Document
Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 06, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36243 | ||
Entity Registrant Name | Hilton Worldwide Holdings Inc. | ||
Entity Central Index Key | 0001585689 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | 2019 | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-4384691 | ||
Entity Address, Address Line One | 7930 Jones Branch Drive | ||
Entity Address, Address Line Two | Suite 1100 | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
City Area Code | 703 | ||
Local Phone Number | 883-1000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | HLT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 27,521 | ||
Entity Common Stock, Shares Outstanding | 277,447,716 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Assets: | |||
Cash and cash equivalents | $ 538 | $ 403 | |
Restricted cash and cash equivalents | 92 | 81 | |
Accounts receivable, net of allowance for doubtful accounts | 1,261 | 1,150 | |
Prepaid expenses | 130 | 160 | |
Other | 72 | 189 | |
Total current assets | 2,093 | 1,983 | |
Intangibles and Other Assets: | |||
Goodwill | 5,159 | 5,160 | |
Brands | 4,877 | 4,869 | |
Management and franchise contracts, net | 780 | 872 | |
Other intangible assets, net | 421 | 415 | |
Operating lease right-of-use assets | 867 | 0 | |
Property and equipment, net | 380 | 367 | |
Deferred income tax assets | 100 | 90 | |
Other | 280 | 239 | |
Total intangibles and other assets | 12,864 | 12,012 | |
Total assets | 14,957 | 13,995 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,703 | 1,549 | |
Current maturities of long-term debt | [1] | 37 | 16 |
Current portion of deferred revenues | 332 | 350 | |
Total current liabilities | 2,871 | 2,615 | |
Long-term debt | 7,956 | 7,266 | |
Operating lease liabilities | 1,037 | 0 | |
Deferred revenues | 827 | 826 | |
Deferred income tax liabilities | 795 | 898 | |
Other | 883 | 863 | |
Total liabilities | 15,429 | 13,437 | |
Commitments and contingencies | |||
Equity (Deficit): | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Treasury stock, at cost | (4,169) | (2,625) | |
Additional paid-in capital | 10,489 | 10,372 | |
Accumulated deficit | (5,965) | (6,417) | |
Accumulated other comprehensive loss | (840) | (782) | |
Total Hilton stockholders' equity (deficit) | (482) | 551 | |
Noncontrolling interests | 10 | 7 | |
Total equity (deficit) | (472) | 558 | |
Total liabilities and equity (deficit) | 14,957 | 13,995 | |
Guest Loyalty Program [Member] | |||
Current Liabilities: | |||
Current portion of liability for guest loyalty program | 799 | 700 | |
Liability for guest loyalty program | $ 1,060 | $ 969 | |
[1] | Represents current maturities of finance lease liabilities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable | $ 44 | $ 42 |
Total current assets - variable interest entities | 2,093 | 1,983 |
Total intangibles and other assets - variable interest entities | 12,864 | 12,012 |
Total current liabilities - variable interest entities | 2,871 | 2,615 |
Liabilities - variable interest entities | $ 15,429 | $ 13,437 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, issued shares | 333,159,770 | 332,105,163 |
Common stock, outstanding shares | 278,985,125 | 294,815,890 |
Treasury stock, shares | 54,174,645 | 37,289,273 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Total current assets - variable interest entities | $ 100 | $ 90 |
Total intangibles and other assets - variable interest entities | 179 | 178 |
Total current liabilities - variable interest entities | 64 | 56 |
Liabilities - variable interest entities | $ 260 | $ 263 |
Consolidated Statements of Oper
Consolidated Statements of Operations Statement - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | $ 9,452 | $ 8,906 | $ 8,131 | |
Depreciation and amortization | 346 | 325 | 336 | |
General and administrative | 441 | 443 | 439 | |
Other expenses | 72 | 51 | 56 | |
Total expenses excluding reimbursable expenses | 2,113 | 2,151 | 2,100 | |
Total expenses | 7,876 | 7,474 | 6,999 | |
Gain on sale of assets, net | 81 | 0 | 0 | |
Operating income | 1,657 | 1,432 | 1,132 | |
Interest expense | (414) | (371) | (351) | |
Loss (gain) on foreign currency transactions | (2) | (11) | 3 | |
Loss on debt extinguishment | 0 | 0 | (60) | |
Other non-operating income, net | 3 | 28 | 29 | |
Income before income taxes | 1,244 | 1,078 | 753 | |
Income tax benefit (expense) | (358) | (309) | 336 | |
Net income | 886 | 769 | 1,089 | |
Net income attributable to noncontrolling interests | (5) | (5) | (5) | |
Net income attributable to Hilton stockholders | $ 881 | $ 764 | $ 1,084 | |
Earnings per share, Basic [Abstract] | ||||
Basic EPS | [1] | $ 3.07 | $ 2.53 | $ 3.34 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted EPS | [1] | 3.04 | 2.50 | 3.32 |
Cash dividends declared per share | $ 0.60 | $ 0.60 | $ 0.60 | |
Franchise and licensing fees | ||||
Revenues | $ 1,681 | $ 1,530 | $ 1,321 | |
Base and other management fees | ||||
Revenues | 332 | 321 | 324 | |
Incentive management fees | ||||
Revenues | 230 | 235 | 222 | |
Owned and leased hotels | ||||
Revenues | 1,422 | 1,484 | 1,432 | |
Expenses | 1,254 | 1,332 | 1,269 | |
Other revenues | ||||
Revenues | 101 | 98 | 105 | |
Total revenues excluding reimbursable revenues | ||||
Revenues | 3,766 | 3,668 | 3,404 | |
Other revenues from managed and franchised properties | ||||
Revenues | 5,686 | 5,238 | 4,727 | |
Other expenses from managed and franchised properties | ||||
Expenses | $ 5,763 | $ 5,323 | $ 4,899 | |
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 176 | $ 290 | $ 261 | $ 159 | $ 225 | $ 164 | $ 217 | $ 163 | $ 886 | $ 769 | $ 1,089 |
Other comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustment | (4) | (70) | 162 | ||||||||
Pension liability adjustment | (9) | (9) | 22 | ||||||||
Cash flow hedge adjustment | (45) | 22 | 13 | ||||||||
Total other comprehensive income (loss) | (58) | (57) | 197 | ||||||||
Comprehensive income | 828 | 712 | 1,286 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (5) | ||||||||
Comprehensive income attributable to Hilton stockholders | $ 823 | $ 707 | $ 1,281 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation adjustment, tax benefit (expense) | $ (8) | $ 6 | $ 32 |
Pension liability adjustment, tax benefit (expense) | 3 | 3 | (8) |
Cash flow hedge adjustment, tax benefit (expense) | $ 15 | $ (8) | $ (7) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating Activities: | ||||
Net income | $ 886 | $ 769 | $ 1,089 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Amortization of contract acquisition costs | 29 | 27 | 17 | |
Depreciation and amortization | 346 | 325 | 336 | |
Gain on sale of assets, net | (81) | 0 | 0 | |
Loss (gain) on foreign currency transactions | 2 | 11 | (3) | |
Loss on debt extinguishment | 0 | 0 | 60 | |
Share-based compensation | 154 | 127 | 121 | |
Amortization of deferred financing costs and other | 16 | 16 | 15 | |
Distributions from unconsolidated affiliates | 2 | 4 | 1 | |
Deferred income taxes | (20) | (14) | (729) | |
Contract Acquisition Costs | 90 | 103 | 75 | |
Accounts receivable, net | (105) | (161) | (204) | |
Prepaid expenses | 6 | (39) | (11) | |
Other current assets | 15 | 13 | (24) | |
Accounts payable, accrued expenses and other | 99 | 148 | (17) | |
Change in operating lease right-of-use assets | 43 | 0 | 0 | |
Change in operating lease liabilities | (80) | 0 | 0 | |
Change in deferred revenues | (17) | (18) | 334 | |
Change in liability for guest loyalty program | [1] | 413 | ||
Change in other liabilities | (14) | (53) | (95) | |
Other | 2 | (4) | 5 | |
Net cash provided by operating activities | 1,384 | 1,255 | 849 | |
Investing Activities: | ||||
Capital expenditures for property and equipment | (81) | (72) | (58) | |
Payments received on other financing receivables | 3 | 50 | 7 | |
Proceeds from asset disposition | 120 | 0 | 0 | |
Capitalized software costs | (124) | (87) | (75) | |
Other | (41) | (22) | (21) | |
Net cash used in investing activities | (123) | (131) | (147) | |
Financing Activities: | ||||
Borrowings | 2,200 | 1,676 | 1,824 | |
Repayment of debt | (1,547) | (1,005) | (1,860) | |
Debt issuance costs and redemption premium | (29) | (21) | (69) | |
Dividends paid | (172) | (181) | (195) | |
Cash transferred in spin-offs | 0 | 0 | (501) | |
Repurchases of common stock | (1,538) | (1,721) | (891) | |
Share-based compensation tax withholdings and other | (27) | (44) | (31) | |
Other | 0 | 4 | 1 | |
Net cash used in financing activities | (1,113) | (1,300) | (1,724) | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (10) | 8 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 146 | (186) | (1,014) | |
Cash, restricted cash and cash equivalents, beginning of period | 484 | 670 | 1,684 | |
Cash, restricted cash and cash equivalents, end of period | 630 | 484 | 670 | |
Guest Loyalty Program [Member] | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Change in liability for guest loyalty program | $ 191 | $ 207 | $ 29 | |
[1] | Includes $239Â million related to Hilton Honors. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) Statement - USD ($) $ in Millions | Total | Common stock | Treasury stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interests |
Beginning balance, shares at Dec. 31, 2016 | 329,000,000 | ||||||
Beginning balance, equity attributable to Hilton stockholders at Dec. 31, 2016 | $ 3 | $ 0 | $ 10,220 | $ (3,545) | $ (1,001) | ||
Beginning balance, equity attributable to noncontrolling interest at Dec. 31, 2016 | $ (50) | ||||||
Beginning balance, equity at Dec. 31, 2016 | $ 5,627 | ||||||
Net income attributable to Hilton stockholders | 1,084 | 1,084 | |||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income | 1,089 | ||||||
Currency translation adjustment | 162 | 162 | |||||
Pension liability adjustment | 22 | 22 | |||||
Cash flow hedge adjustment | 13 | 13 | |||||
Other comprehensive income (loss) | 197 | ||||||
Other comprehensive income (loss), net of tax | 197 | ||||||
Dividends | (196) | (196) | |||||
Repurchases of common stock, shares | (14,000,000) | ||||||
Repurchases of common stock | (891) | (891) | |||||
Share-based compensation, shares | 2,000,000 | ||||||
Share-based compensation | 77 | 77 | |||||
Distributions | (1) | 1 | |||||
Spin-offs of Park and HGV | (4,211) | (4,323) | 63 | 49 | |||
Ending balance, shares at Dec. 31, 2017 | 317,000,000 | ||||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2017 | $ 3 | (891) | 10,298 | (6,981) | (741) | ||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2017 | 3 | ||||||
Ending balance, equity at Dec. 31, 2017 | 1,691 | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2016-09 | 0 | 1 | (1) | ||||
Net income attributable to Hilton stockholders | 764 | 764 | |||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income | 769 | ||||||
Currency translation adjustment | (70) | (70) | |||||
Pension liability adjustment | (9) | (9) | |||||
Cash flow hedge adjustment | 22 | 22 | |||||
Other comprehensive income (loss) | (57) | ||||||
Other comprehensive income (loss), net of tax | (57) | ||||||
Dividends | (184) | (184) | |||||
Repurchases of common stock, shares | (23,000,000) | ||||||
Repurchases of common stock | (1,721) | (1,721) | |||||
Share-based compensation, shares | 1,000,000 | ||||||
Share-based compensation | 64 | (13) | 77 | ||||
Distributions | (1) | (1) | |||||
Acquisition of noncontrolling interest | $ (3) | (3) | |||||
Ending balance, shares at Dec. 31, 2018 | 294,815,890 | 295,000,000 | |||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2018 | $ 551 | $ 3 | (2,625) | 10,372 | (6,417) | (782) | |
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2018 | (7) | 7 | |||||
Ending balance, equity at Dec. 31, 2018 | 558 | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2018-02 | 0 | 16 | (16) | ||||
Net income attributable to Hilton stockholders | 881 | 881 | |||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income | 886 | ||||||
Currency translation adjustment | (4) | (4) | 0 | ||||
Pension liability adjustment | (9) | (9) | |||||
Cash flow hedge adjustment | (45) | (45) | |||||
Other comprehensive income (loss) | (58) | ||||||
Other comprehensive income (loss), net of tax | (58) | ||||||
Dividends | (173) | (173) | |||||
Repurchases of common stock, shares | (17,000,000) | ||||||
Repurchases of common stock | (1,544) | (1,544) | |||||
Share-based compensation, shares | 1,000,000 | ||||||
Share-based compensation | 117 | 0 | 117 | ||||
Deconsolidation of a variable interest entity | $ (2) | (2) | |||||
Ending balance, shares at Dec. 31, 2019 | 278,985,125 | 279,000,000 | |||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2019 | $ (482) | $ 3 | $ (4,169) | $ 10,489 | (5,965) | $ (840) | |
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2019 | (10) | $ 10 | |||||
Ending balance, equity at Dec. 31, 2019 | (472) | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2016-02 | $ (256) | $ (256) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of December 31, 2019, we managed, franchised, owned or leased 6,110 hotels and resorts, including timeshare properties, totaling 971,780 rooms in 119 countries and territories. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. ("Park") and Hilton Grand Vacations Inc. ("HGV"), respectively, (the "spin-offs"). |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position of Hilton as of December 31, 2019 and December 31, 2018 and results of operations for the years ended December 31, 2019, 2018 and 2017. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities other than VIEs when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. Use of Estimates The preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Summary of Significant Accounting Policies On January 1, 2019, we adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02") using a modified-retrospective approach. The presentation of financial information for periods prior to January 1, 2019 remains unchanged and in accordance with Leases (Topic 840). See "Leases" and "Recently Issued Accounting Pronouncements" below for additional information. Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, as well as from our owned and leased hotels. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and may also include fees from a licensing agreement for the use of certain Hilton marks and IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed and collected monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-brand credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and, in some cases, may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brand programs and shared services, which are paid from program fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue and number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotels. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. Contract Assets Contract assets relate to incentive management fees for which the period of service has passed, but for which our right to consideration is conditional upon completing the requirements of the incentive fee period. Contract assets are included in other current assets in our consolidated balance sheets and are reclassified to accounts receivable when our right to consideration becomes unconditional. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) ("Blackstone") (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying value. We evaluate goodwill for potential impairment by comparing the carrying values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in other expenses in our consolidated statements of operations in an amount equal to the excess of the carrying value over the fair value, limited to the total amount of goodwill allocated to that reporting unit. Brands We manage, franchise, own and lease hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. At the time of the Merger, our portfolio consisted of Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton and our timeshare brand, Hilton Grand Vacations. As a result of the Merger, these brands were assigned a fair value using the relief from royalty valuation approach or the excess earnings method, depending on the contract type. All brands that were launched post-Merger, including LXR Hotels & Resorts, Canopy by Hilton, Signia by Hilton, Curio by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, Home2 Suites by Hilton and, our newest brand, Tempo by Hilton, were not assigned fair values and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our indefinite lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the brand intangible asset is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in other expenses in our consolidated statements of operations as an impairment loss. Intangible Assets with Finite Useful Lives We have certain finite-lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. Additionally, we capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger (13 to 16 years); management contract acquisition costs and development commissions (20 to 30 years); franchise contracts recorded at the Merger (12 to 13 years); franchise contract acquisition costs and development commissions (10 to 20 years); leases (12 to 35 years); Hilton Honors (16 years); and capitalized software costs (3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for capitalized software costs are included as investing activities. We review all finite-lived intangible assets for impairment when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated fair value in other expenses our consolidated statements of operations. Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net carrying value of the asset group, the excess of the net carrying value over the estimated fair value is recognized as an impairment loss in other expenses in our consolidated statements of operations. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us, deferred rent and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in other expenses in our consolidated statements of operations. ROU assets of operating leases are included in operating lease right-of-use assets and ROU assets of finance leases are included in property and equipment, net in our consolidated balance sheets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract's performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; and (iii) amounts received when points are issued under Hilton Honors, but for which revenue is not yet recognized, since the related points are not yet redeemed. Contract liabilities related to advance consideration received for fees and certain indirect reimbursements are recognized as revenue over the term of the related contract. Contract liabilities related to amounts received for Hilton Honors are recognized as revenue when the points are redeemed for a free good or service by the Hilton Honors member, which, on average, occurs within two years of points issuance. Contract liabilities are included in deferred revenues in our consolidated balance sheets. Hilton Honors Hilton Honors is our guest loyalty program provided to our hotel and resort properties. Nearly all of our managed, franchised, owned and leased properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required level of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or program partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication and administrative expenses, as well as the estimated cost of award redemptions. When these payments are received we record amounts equal to the estimated cost per point of the future redemption obligation within liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheets. For the Hilton Honors fees that are charged to the participating properties, we allocate such fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton |
Disposal
Disposal | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal | Disposal In September 2019, we completed the sale of the Hilton Odawara Resort & Spa for a price of 13Â billion Japanese yen (equivalent to $122 million as of the closing date) and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, we recognized a pre-tax gain of $81 million included in gain on sale of assets, net in our consolidated statement of operations for the year ended December 31, 2019. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customer | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities during the year ended December 31, 2019: (in millions) Balance as of December 31, 2018 $ 1,060 Cash received in advance and not recognized as revenue (1) 413 Revenue recognized (1) (288) Other (2) (144) Balance as of December 31, 2019 $ 1,041 ____________ (1) Includes $239 million related to Hilton Honors. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. We recognized revenues that were previously deferred as contract liabilities of $229 million and $132 million during the years ended December 31, 2018 and 2017, respectively. Performance Obligations |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2019 and 2018, we consolidated two VIEs that lease hotel properties and, as of December 31, 2018, we also consolidated one VIE that was a management company. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities. In June 2019, the VIE that was a management company sold its assets. As a result of the sale, we deconsolidated $7 million of assets and $3 million of liabilities, as we no longer had the power to direct the activities that most significantly affect the VIE's economic performance. See our consolidated statements of stockholders' equity (deficit) for additional information. Our consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: December 31, 2019 2018 (in millions) Cash and cash equivalents $ 81 $ 71 Accounts receivable, net 15 15 Property and equipment, net 69 68 Deferred income tax assets 48 53 Other non-current assets 61 58 Accounts payable, accrued expenses and other 49 41 Long-term debt (1) 194 205 Other long-term liabilities 17 15 ____________ (1) Includes finance lease liabilities of $177 million and $187 million as of December 31, 2019 and 2018, respectively. We did not provide any financial or other support to any consolidated VIEs that we were not previously contractually required to provide during the years ended December 31, 2019, 2018 and 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2017 $ 104 $ 5,086 $ 5,190 Foreign currency translation (5) (25) (30) Balance as of December 31, 2018 99 5,061 5,160 Foreign currency translation (1) — (1) Balance as of December 31, 2019 $ 98 $ 5,061 $ 5,159 ____________ (1) Amounts for the ownership reporting unit include gross carrying values of $438 million, $439 million and $444 million as of December 31, 2019, 2018 and 2017, respectively, and accumulated impairment losses of $340 million as of December 31, 2019, 2018 and 2017. (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2019, 2018 and 2017. Intangible Assets Changes to our brands intangible assets from December 31, 2018 to December 31, 2019 were due to foreign currency translations. Finite-lived intangible assets were as follows: December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,163 $ (1,974) $ 189 Contract acquisition costs 604 (121) 483 Development commissions and other 127 (19) 108 $ 2,894 $ (2,114) $ 780 Other intangible assets: Leases (1) $ 290 $ (176) $ 114 Capitalized software costs 625 (399) 226 Hilton Honors (1) 338 (257) 81 Other (1) 34 (34) — $ 1,287 $ (866) $ 421 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873) $ 355 Contract acquisition costs 525 (101) 424 Development commissions and other 108 (15) 93 $ 2,861 $ (1,989) $ 872 Other intangible assets: Leases (1) $ 288 $ (161) $ 127 Capitalized software costs 503 (321) 182 Hilton Honors (1) 338 (236) 102 Other (1) 38 (34) 4 $ 1,167 $ (752) $ 415 ____________ (1) Represents intangible assets that were initially recorded at fair value as part of the Merger. Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2019 2018 2017 (in millions) Recognized in depreciation and amortization expense (1) $ 286 $ 271 $ 277 Recognized as a reduction of franchise and licensing fees and base and other management fees 29 27 17 ____________ (1) Includes amortization expense of $202 million, $204 million and $206 million for the years ended December 31, 2019, 2018 and 2017, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. We estimate future amortization of our finite-lived intangible assets as of December 31, 2019 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2020 $ 276 $ 30 2021 126 28 2022 103 26 2023 62 25 2024 19 25 Thereafter 132 349 $ 718 $ 483 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2019 2018 (in millions) Land $ 11 $ 12 Buildings and leasehold improvements 382 391 Furniture and equipment 356 356 Construction-in-progress 20 24 Finance lease right-of-use assets 120 65 889 848 Accumulated depreciation (509) (481) $ 380 $ 367 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2019 2018 (in millions) Accrued employee compensation and benefits $ 554 $ 532 Accounts payable 303 283 Insurance reserves, current 95 199 Operating lease ROU liabilities 133 — Other liabilities and accrued expenses (1) 618 535 $ 1,703 $ 1,549 ____________ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2019, were as follows: December 31, 2019 2018 (in millions) Senior secured revolving credit facility with a weighted average rate of 2.98%, due 2024 $ 195 $ — Senior secured term loan facility with a rate of 3.54%, due 2026 2,619 3,119 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 4.875%, due 2030 1,000 — Finance lease liabilities with a weighted average rate of 5.83%, due 2020 to 2030 245 225 Other debt with a rate of 3.08%, due 2026 17 17 8,076 7,361 Less: unamortized deferred financing costs and discount (83) (79) Less: current maturities of long-term debt (1) (37) (16) $ 7,956 $ 7,266 ____________ (1) Represents current maturities of finance lease liabilities. Senior Notes In June 2019, we issued $1.0 billion aggregate principal amount of 4.875% Senior Notes due 2030 (the "2030 Senior Notes") and incurred $15 million of debt issuance costs. Interest on the 2030 Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning January 2020. We used a portion of the net proceeds from the issuance to repay $500 million outstanding on our senior secured term loan facility (the "Term Loans") and to repay $225 million outstanding under our senior secured revolving credit facility (the "Revolving Credit Facility"). See "Senior Secured Credit Facilities" below for additional information. In April 2018, we issued $1.5 billion aggregate principal amount of 5.125% Senior Notes due 2026 (the "2026 Senior Notes") and used the net proceeds, together with borrowings under our Revolving Credit Facility and available cash, to repurchase $1,171 million of shares of our common stock from HNA Tourism Group Co., Ltd and repay $500 million outstanding on our Term Loans. See "Senior Secured Credit Facilities" below for additional information. In March 2017, we used the proceeds from the issuances of the 4.625% Senior Notes due 2025 (the "2025 Senior Notes") and the 4.875% Senior Notes due 2027 (the "2027 Senior Notes"), to redeem in full $1.5 billion of Senior Notes due 2021. In connection with the repayment, we paid a redemption premium of $42 million and accelerated the recognition of $18 million of unamortized deferred financing costs, which were included in loss on debt extinguishment in our consolidated statement of operations for the year ended December 31, 2017. The 4.250% Senior Notes due 2024 (the "2024 Senior Notes"), 2025 Senior Notes, 2026 Senior Notes, 2027 Senior Notes and 2030 Senior Notes are collectively referred to as the Senior Notes and are guaranteed jointly and severally on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries. See Note 22: "Condensed Consolidating Guarantor Financial Information" for additional information. Senior Secured Credit Facilities Our senior secured credit facilities consist of the Revolving Credit Facility and Term Loans. The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries. In June 2019, we amended the Revolving Credit Facility to increase the borrowing capacity to $1.75 billion, $250 million of which is available in the form of letters of credit, and extended the maturity date to June 2024. In connection with this amendment, we incurred $7 million of debt issuance costs, which were included in other non-current assets in our consolidated balance sheet as of December 31, 2019. As of December 31, 2019, in addition to the $195 million outstanding under the Revolving Credit Facility, we had $60 million of outstanding letters of credit, resulting in an available borrowing capacity under the Revolving Credit Facility of $1.50 billion. We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder. In June 2019, we also amended the Term Loans to extend the maturity date to June 2026 with a discount of 0.25 percent. In connection with the amendment and the 2019 repayment of the Term Loans, we recognized $10 million of fees and unamortized deferred financing costs and discount, which were included in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2019. In December 2018, we repaid an additional $300 million outstanding under our Term Loans and reduced the interest rate on the remaining balance by 25 basis points to LIBOR plus 175 basis points. In connection with the 2018 repayments, we accelerated $8 million of unamortized deferred financing costs and discount, which were included in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2018. Debt Maturities The contractual maturities of our long-term debt as of December 31, 2019 were as follows: Year (in millions) 2020 $ 37 2021 30 2022 22 2023 20 2024 1,217 Thereafter 6,750 $ 8,076 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2019 2018 (in millions) Pension obligations $ 134 $ 145 Other long-term tax liabilities 369 395 Deferred employee compensation and benefits 118 113 Insurance reserves (1) 178 146 Other 84 64 $ 883 $ 863 ____________ (1) Obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 117 $ — $ 117 $ — Restricted cash equivalents 32 — 32 — Liabilities: Long-term debt (1) 7,731 5,230 — 2,834 Interest rate swaps 37 — 37 — December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Interest rate swaps 16 — 16 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of December 31, 2019 and 2018. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. We measure our interest rate swaps at fair value, which were estimated using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable. Our interest rate swaps are included in other non-current assets or other long-term liabilities in our consolidated balance sheets depending on their value to us as of the balance sheet date. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities related to hotel properties. As of December 31, 2019, we leased 52 hotels under operating leases and six hotels under finance leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options. Supplemental balance sheet information related to leases as of December 31, 2019 was as follows: (dollars Operating leases: Operating lease right-of-use assets $ 867 Accounts payable, accrued expenses and other 133 Operating lease liabilities 1,037 Finance leases: Property and equipment, net $ 52 Current maturities of long-term debt 37 Long-term debt 208 Weighted average remaining lease term: Operating leases 12.8 years Finance leases 8.6 years Weighted average discount rate: Operating leases 3.76 % Finance leases 5.83 % The components of lease expense for the year ended December 31, 2019 were as follows: (in millions) Operating lease expense for fixed payments $ 144 Finance lease expense: Amortization of ROU assets 30 Interest on lease liabilities 14 Variable lease expense (1) 168 ____________ (1) Includes amounts related to operating leases and interest payments on finance leases. Lease expense for our operating leases for the years ended December 31, 2018 and 2017 included $225 million and $183 million, respectively, of fixed lease expense and $142 million and $101 million, respectively, of variable lease expense. Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 187 Financing cash flows from finance leases 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 48 Finance leases 61 Our future minimum lease payments as of December 31, 2019 were as follows: Operating Finance Year (in millions) 2020 $ 178 $ 51 2021 172 42 2022 143 33 2023 128 30 2024 107 29 Thereafter 790 134 Total minimum lease payments 1,518 319 Less: imputed interest (348) (74) Total lease liabilities $ 1,170 $ 245 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) U.S. income before tax $ 867 $ 881 $ 632 Foreign income before tax 377 197 121 Income before income taxes $ 1,244 $ 1,078 $ 753 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Current: Federal $ 190 $ 210 $ 239 State 60 53 59 Foreign 128 60 95 Total current 378 323 393 Deferred: Federal (61) (52) (667) State (5) (14) (35) Foreign 46 52 (27) Total deferred (20) (14) (729) Total provision (benefit) for income taxes $ 358 $ 309 $ (336) Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Statutory U.S. federal income tax provision $ 261 $ 226 $ 264 State income taxes, net of U.S. federal income tax benefit 47 37 19 Impact of foreign operations 31 26 4 Effects of the TCJ Act — 13 (600) Corporate restructuring — 9 — Changes in deferred tax asset valuation allowances 13 (6) (48) Provision for uncertain tax positions 16 16 38 Other, net (10) (12) (13) Provision (benefit) for income taxes $ 358 $ 309 $ (336) Restructuring During the year ended December 31, 2018, our controlled foreign corporations ("CFC") distributed the stock of certain subsidiaries (the "Distributions"). Subsequent to the Distributions, the distributed subsidiaries were included in our U.S. federal and state income tax filings. As a result of the Distributions, we incurred deferred income tax expense of $9 million for the year ended December 31, 2018, including: (i) recording U.S. deferred tax liabilities related to the distributed subsidiaries of $12 million and (ii) remeasuring our existing deferred tax assets and liabilities and other tax liabilities at the effective tax rates at which they will reverse in future periods, resulting in a reduction of liabilities of $3 million. Tax Cuts and Jobs Act of 2017 We recognized a provisional benefit as of December 31, 2017 of $600 million, of which $569 million was the result of the remeasurement of U.S. deferred tax assets and liabilities and other tax liabilities. As of December 31, 2018, we made adjustments to the provisional amounts recorded as of December 31, 2017, as described below. • Deferred tax assets and liabilities and other tax liabilities. We remeasured deferred tax assets and liabilities and other tax liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent. The provisional amounts recorded as of December 31, 2017 related to the remeasurement of our deferred tax assets and liabilities, uncertain tax position reserves and other tax liabilities were income tax benefits of $452 million, $33 million and $84 million, respectively. However, this remeasurement was based on estimates as of the enactment date of the TCJ Act and our existing analysis of the numerous complex tax law changes in the TCJ Act. Upon completing our analysis of the TCJ Act and associated regulations, we adjusted our provisional amount by recording an additional tax benefit of $10 million during the year ended December 31, 2018, which was included in income tax expense in our consolidated statement of operations. • Foreign taxation changes. A one-time transition tax was applied to foreign earnings previously not subjected to U.S. tax, based on our total post-1986 earnings and profits ("E&P") that were previously deferred from U.S. income taxes, but assessed at a lower tax rate than the federal corporate tax rate of 35 percent. We recorded a provisional amount for our one-time transition tax liability for our foreign subsidiaries based on estimates, as of the enactment date of the TCJ Act, for our controlled foreign subsidiaries and estimates of the total post-1986 E&P for noncontrolled foreign subsidiaries. We previously recorded a federal deferred tax liability for our deferred earnings at the statutory 35 percent rate, and the application of the transition tax results in these earnings being subjected to a lower rate, resulting in a provisional income tax benefit as of December 31, 2017 of $15 million. As a result of additional guidance issued by the U.S. Treasury Department, we refined our calculations and recorded an additional tax benefit of $2 million during the year ended December 31, 2018. Additionally, we had not recorded certain deferred tax assets, primarily related to E&P deficits, for some foreign subsidiaries based upon an expectation that no tax benefit from such assets would be realized within the foreseeable future. The recognition of tax benefits from the deferred tax assets previously not recorded resulted in an income tax benefit of $16 million during the year ended December 31, 2017. • Outside basis differences . With the changes made to the U.S. taxation of foreign entities, including the change to a territorial system of taxation, the introduction of a dividend participation exemption and the changes to the current taxation of GILTI, we determined our current method of calculating CFC outside basis should be revised to incorporate the TCJ Act changes. As a result, we recorded additional deferred tax liabilities of $31 million during the year ended December 31, 2018 within income tax expense (benefit) in our consolidated statement of operations. Our accounting for the effects of the TCJ Act was complete as of December 31, 2018. Deferred Income Taxes Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2019 2018 (in millions) Deferred tax assets: Foreign net operating loss carryforwards $ 386 $ 389 Compensation 138 118 Reserves 33 18 Operating and finance lease liabilities 404 75 Deferred income 260 258 Foreign tax credit carryforwards 49 — Other 51 42 Total gross deferred tax assets 1,321 900 Less: valuation allowance (501) (399) Deferred tax assets 820 501 Deferred tax liabilities: Brands (1,133) (1,123) Finite-lived intangible assets (140) (157) Investment in foreign subsidiaries (32) (29) Operating and finance lease ROU assets (210) — Deferred tax liabilities (1,515) (1,309) Net deferred taxes $ (695) $ (808) As of December 31, 2019, we had foreign net operating loss carryforwards of $1.6 billion, which resulted in deferred tax assets of $386 million for foreign jurisdictions. Approximately $16 million of our deferred tax assets as of December 31, 2019 related to net operating loss carryforwards that will expire between 2020 and 2039 with less than $1 million of that amount expiring in 2020. Approximately $370 million of our deferred tax assets as of December 31, 2019 resulted from net operating loss carryforwards that are not subject to expiration. We believe that it is more likely than not that the benefit from certain foreign net operating loss carryforwards will not be realized. In recognition of this assessment, we provided a valuation allowance of $376 million as of December 31, 2019 on the deferred tax assets relating to the foreign net operating loss carryforwards. During the year ended December 31, 2019, we provided a valuation allowance of $18 million on certain foreign deferred tax assets generated during the current year and released valuation allowances of $5 million on foreign deferred tax assets in other jurisdictions. In both cases, management determined whether we were more likely than not to realize the benefit of these assets by considering all available positive and negative evidence to determine whether sufficient future taxable income will be generated to permit use of the deferred tax assets. Additionally, total valuation allowances increased by another $89 million due to three current year changes that resulted in no net income tax expense or benefit: (i) the adoption of ASU 2016-02; (ii) the generation of deferred tax assets for U.S. foreign tax credit carryforwards; and (iii) revaluations of certain existing deferred tax assets. In connection with the adoption of ASU 2016-02, additional U.S. and foreign deferred tax assets relating to operating and finance lease liabilities were recorded. We do not believe that it is more likely than not that we will be able to realize the benefit of these foreign deferred tax assets in certain foreign entities, primarily due to limitations on the tax deductibility of losses, and have provided a valuation allowance of $51 million on these deferred tax assets. Both the deferred tax assets related to lease liabilities and their associated valuation allowances were recorded through a cumulative adjustment to accumulated deficit upon adoption of the standard. We generated $49 million of deferred tax assets for U.S. foreign tax credit carryforwards during the current year, but we believe that it is unlikely that we will be able to realize the benefit of these deferred tax assets due to foreign source income limitations. We provided a valuation allowance of $49 million on these deferred tax assets, resulting in no net tax benefit being recognized in the current year for these carryforwards. Revaluations of certain existing deferred tax assets and their associated valuation allowances due to tax rate changes and foreign exchange rate changes resulted in no net income tax expense in the current year but decreased total valuation allowances by $11 million. Overall, our total valuation allowance increased by $102 million during the year ended December 31, 2019. Tax Uncertainties We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the Internal Revenue Service ("IRS") and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. As of December 31, 2019, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2018 and foreign examinations of our income tax returns for tax years from 1996 through 2018. Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Balance at beginning of year $ 318 $ 283 $ 174 Additions for tax positions related to prior years 67 37 3 Additions for tax positions related to the current year 13 16 126 Reductions for tax positions related to prior years (3) (15) (10) Settlements 1 — (9) Lapse of statute of limitations (2) (3) (2) Currency translation adjustment 1 — 1 Balance at end of year $ 395 $ 318 $ 283 The changes to our unrecognized tax benefits during the year ended December 31, 2019 were primarily related to uncertainty regarding affirmative refund claims submitted to the IRS during 2019, as well as the addition of reserves related to our Hilton Honors guest loyalty program. The changes to our unrecognized tax benefits during the year ended December 31, 2018 were primarily related to uncertainty regarding the calculations of tax deductions claimed in tax returns filed during the year, as well as the addition of reserves related to our Hilton Honors guest loyalty program. The changes to our unrecognized tax benefits during the year ended December 31, 2017 were primarily related to uncertainty regarding the valuation of certain tax assets in the U.S. and the United Kingdom. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense (benefit) in our consolidated statements of operations. During the years ended December 31, 2019, 2018 and 2017, we recognized income tax expense related to interest and penalties of $12 million, $6 million and $3 million, respectively, in our consolidated statements of operations. As of December 31, 2019 and 2018, we had accrued approximately $52 million and $40 million, respectively, for interest and penalties related to our unrecognized tax benefits in our consolidated balance sheets. Included in the balances of unrecognized tax benefits as of December 31, 2019 and 2018 were $380 million and $310 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR and filed a formal appeals protest with the IRS. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from our Hilton Honors guest loyalty program, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is USD, should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro, and thus foreign currency gains and losses with respect to such loans should have been measured in euros, instead of USD. In January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years, which included proposed adjustments that reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments are also being protested in appeals, and formal appeals protests have been submitted. In April 2016, we requested a Technical Advice Memorandum ("TAM") from the IRS with respect to the treatment of the foreign currency gains and losses on loans issued by our Luxembourg subsidiary. We received a taxpayer favorable TAM in October |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans (the "pension plans"), and the benefits are based upon years of service and compensation. The employee benefit plan in the U.S. (the "Domestic Plan") covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996; therefore, the projected benefit obligation is equal to the accumulated benefit obligation. The plan assets will be used to pay benefits due to employees for service through December 31, 1996. Since employees have not accrued additional benefits from that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The annual measurement date for the Domestic Plan is December 31. The employee benefit plans covering many of our international employees include: (i) a plan that covers workers in the United Kingdom (the "U.K. Plan"), which was frozen to further service accruals on November 30, 2013 and (ii) a number of smaller plans that cover workers in various countries around the world (the "International Plans"). The annual measurement date for all of these plans is December 31. We are required to recognize the funded status of our pension plans, which is the difference between the fair value of plan assets and the projected benefit obligations, in our consolidated balance sheets and make corresponding adjustments for changes in the value through accumulated other comprehensive income (loss), net of taxes. The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 Service cost — — 2 3 1 2 Interest cost 14 12 10 9 2 2 Prior service cost (credit) (1) — — (3) 4 — — Actuarial loss (gain) 37 (14) 62 (39) 6 — Settlements and curtailments (2) (2) — — (1) (1) Effect of foreign currency exchange rates — — 13 (25) — (1) Benefits paid (24) (23) (14) (20) (4) (5) Benefit obligation at end of year $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 Change in Plan Assets: Fair value of plan assets at beginning of year $ 274 $ 306 $ 340 $ 386 $ 63 $ 65 Actual return on plan assets, net of expenses 53 (23) 57 (14) 6 (1) Employer contributions 17 16 9 10 4 4 Settlements (2) (2) — — (1) — Effect of foreign currency exchange rates — — 12 (22) — — Benefits paid (24) (23) (14) (20) (4) (5) Fair value of plan assets at end of year 318 274 404 340 68 63 Funded status at end of year (underfunded) (64) (83) (41) (35) (19) (20) Accumulated benefit obligation $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 ____________ (1) Relates to U.K. pension equalization requirements. Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 (in millions) Other non-current assets $ — $ — $ — $ — $ 10 $ 7 Other liabilities (64) (83) (41) (35) (29) (27) Net amount recognized $ (64) $ (83) $ (41) $ (35) $ (19) $ (20) Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 (in millions) Net actuarial loss (gain) $ (3) $ 22 $ (15) $ 29 $ (14) $ 13 $ 3 $ 3 $ — Prior service cost (credit) (4) (4) (3) (3) 4 — — — — Amortization of net loss (3) (3) (3) (3) (4) (4) (1) (1) — Net amount recognized $ (10) $ 15 $ (21) $ 23 $ (14) $ 9 $ 2 $ 2 $ — The estimated unrecognized prior service cost and net loss that will be amortized into net periodic pension cost (credit) during the year ended December 31, 2020 are as follows: Domestic Plan U.K. Plan International Plans (in millions) Unrecognized prior service cost (1) $ 4 $ — $ — Unrecognized net loss 4 4 1 Amount unrecognized $ 8 $ 4 $ 1 ____________ (1) Unrecognized prior service cost amounts for the U.K. Plan and International Plans are less than $1 million. The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 (in millions) Service cost $ 6 $ 6 $ 8 $ 2 $ 3 $ 2 $ 2 $ 2 $ 2 Interest cost 14 12 12 10 9 10 2 2 2 Expected return on plan assets (19) (19) (19) (19) (21) (19) (3) (3) (3) Amortization of prior service cost 4 3 3 — — — — — — Amortization of net loss 3 3 3 3 4 4 1 1 — Net periodic pension cost (credit) $ 8 $ 5 $ 7 $ (4) $ (5) $ (3) $ 2 $ 2 $ 1 The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 Discount rate 3.2 % 4.3 % 2.1 % 3.1 % 2.2 % 3.3 % Salary inflation N/A N/A 1.6 1.8 2.2 2.2 Pension inflation N/A N/A 2.8 3.0 1.9 1.8 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.3 % 3.6 % 4.0 % 3.1 % 2.6 % 2.8 % 3.1 % 2.9 % 3.0 % Expected return on plan assets 7.0 7.0 7.0 5.5 5.5 5.5 4.3 4.6 4.3 Salary inflation N/A N/A N/A 1.8 1.8 1.9 2.2 2.2 2.1 Pension inflation N/A N/A N/A 3.0 3.0 3.1 1.8 1.8 1.7 The investment objectives for the various plans are preservation of capital, current income and long-term growth of capital. All plan assets are managed by outside investment managers and do not include investments in Hilton stock. Asset allocations are reviewed periodically by the investment managers. Expected long-term returns on plan assets are determined using historical performance for debt and equity securities held by our plans, actual performance of plan assets and current and expected market conditions. Expected returns are formulated based on the target asset allocation. The target asset allocation for the Domestic Plan, as a percentage of total plan assets, as of December 31, 2019 and 2018, was 80 percent in funds that invest in equity securities and 20 percent in funds that invest in debt securities. The target asset allocation for the U.K. Plan and the International Plans, as a percentage of total plan assets, as of December 31, 2019 and 2018, was 75 percent in funds that invest in equity and debt securities and 25 percent in bond funds. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: December 31, 2019 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 25 $ 12 Equity funds — 61 2 Bond funds 2 40 — Alternative investments — 169 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 54 — Common collective trusts 316 — 44 Other — 55 — $ 318 $ 404 $ 68 December 31, 2018 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 34 $ 11 Equity funds — 33 2 Bond funds — 39 — Alternative investments — 140 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 44 — Common collective trusts 274 — 40 Other — 50 — $ 274 $ 340 $ 63 ____________ (1) Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. We expect to contribute approximately $13 million, $10 million and $4 million to the Domestic Plan, the U.K. Plan and the International Plans, respectively, in 2020. As of December 31, 2019, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2020 $ 33 $ 15 $ 12 2021 27 15 5 2022 27 15 5 2023 26 16 5 2024 26 16 6 2025-2029 119 83 23 $ 258 $ 160 $ 56 In January 2007, the Domestic Plan and plans maintained for certain domestic hotels currently or formerly managed by us were merged into a multiple employer plan. As of December 31, 2019 and 2018, the multiple employer plan had combined plan assets of $345 million and $297 million, respectively, and a projected benefit obligation of $407 million and $380 million, respectively. We also have various employee defined contribution investment plans whereby we contribute matching percentages of employee contributions. The aggregate expense under these plans totaled $17 million, $16 million and $15 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $154 million, $127 million and $121 million during the years ended December 31, 2019, 2018 and 2017, respective ly, which included amounts reimbursed by hotel owners. The total tax benefit recognized related to share-based compensation expense was $41 million , $42 million and $49 million for the years ended December 31, 2019, 2018 and 2017, respectively . As of December 31, 2019 and 2018, we ac cr ued $16 million and $15 million, respectively, in accounts payable, accrued expenses and other in our consolidated balance sheets for certain awards settled in cash. As of December 31, 2019, unrecognized compensation costs for unvested awards were approximately $122 million, which are expected to be recognized over a weighted-average period of 1.6 years on a straight-line basis. As of December 31, 2019, there were 14.2 million shares of common stock available for future issuance under the Hilton 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under the 2013 Omnibus Incentive Plan, which will become available for issuance under the Hilton 2017 Omnibus Incentive Plan if such outstanding awards expire or are terminated or are canceled or forfeited. RSUs The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) Number of shares granted 1.0 0.9 1.5 Weighted average grant date fair value per share $ 83.47 $ 79.31 $ 58.80 Aggregate intrinsic value of shares vested $ 92 $ 123 $ 78 The following table summarizes the activity of our RSUs during the year ended December 31, 2019: Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) Outstanding as of December 31, 2018 2.0 $ 64.88 Granted 1.0 83.47 Vested (1.1) 59.90 Forfeited (0.1) 76.01 Outstanding as of December 31, 2019 1.8 77.35 Options The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) Number of options granted 0.8 0.6 0.7 Weighted average exercise price per share $ 83.11 $ 79.36 $ 58.40 Weighted average grant date fair value per share $ 21.08 $ 23.72 $ 13.96 The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Expected volatility (1) 23.51 % 27.91 % 24.00 % Dividend yield (2) 0.81 % 0.74 % 0.92% - 1.03% Risk-free rate (3) 2.47 % 2.73 % 1.93% - 2.03% Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) For the years ended December 31, 2019 and 2018, estimated based on the quarterly dividend and the three-month average stock price at the date of grant; for the year ended December 31, 2017, estimated based on the expected annualized dividend payment at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual terms of the options. The following table summarizes the activity of our options during the year ended December 31, 2019: Number of Shares Weighted Average Exercise Price per Share (in millions) Outstanding as of December 31, 2018 2.4 $ 58.50 Granted 0.8 83.11 Exercised (0.4) 52.37 Outstanding as of December 31, 2019 (1) 2.8 65.72 Exercisable as of December 31, 2019 (2) 1.4 53.93 ____________ (1) The aggregate intrinsic value was $129 million and the weighted average remaining contractual term was 7 years. (2) The aggregate intrinsic value was $83 million and the weighted average remaining contractual term was 6 years. Performance Shares The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) EBITDA CAGR: Number of shares granted 0.2 0.2 0.2 Weighted average grant date fair value per share $ 83.11 $ 79.36 $ 58.40 FCF CAGR: Number of shares granted 0.2 0.2 0.2 Weighted average grant date fair value per share $ 83.11 $ 79.36 $ 58.40 There were no performance shares vested for the year ended December 31, 2019. The aggregate intrinsic value of performance shares vested for the years ended December 31, 2018 and 2017 was less than $1 million. The following table summarizes the activity of our performance shares during the year ended December 31, 2019: EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) (in millions) Outstanding as of December 31, 2018 0.4 $ 69.53 0.4 $ 69.53 Granted 0.2 83.11 0.2 83.11 Outstanding as of December 31, 2019 0.6 74.46 0.6 74.46 As of December 31, 2019, we determined that the performance conditions for the 2017, 2018 and 2019 performance shares are probable of achievement, and we recognized compensation expense, for both our outstanding EBITDA CAGR and FCF CAGR performance shares, at the maximum achievement percentage for the 2017 and 2018 performance shares and at target for the 2019 performance shares. In connection with the spin-offs, we converted previously outstanding performance shares to time-vesting RSUs and recognized incremental expense of $2.3 million and $3.3 million during the years ended December 31, 2018 and 2017, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"): Year Ended December 31, 2019 2018 2017 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 881 $ 764 $ 1,084 Denominator: Weighted average shares outstanding 287 302 324 Basic EPS $ 3.07 $ 2.53 $ 3.34 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 881 $ 764 $ 1,084 Denominator: Weighted average shares outstanding 290 305 327 Diluted EPS $ 3.04 $ 2.50 $ 3.32 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2016 $ (738) $ (251) $ (12) $ (1,001) Other comprehensive income (loss) before reclassifications 161 15 (4) 172 Amounts reclassified from accumulated other comprehensive loss 1 7 17 25 Net current period other comprehensive income 162 22 13 197 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 (513) (229) 1 (741) Other comprehensive income (loss) before reclassifications (70) (18) 17 (71) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70) (9) 22 (57) Cumulative effect of the adoption of ASU 2018-02 38 (22) — 16 Balance as of December 31, 2018 (545) (260) 23 (782) Other comprehensive loss before reclassifications (5) (17) (35) (57) Amounts reclassified from accumulated other comprehensive loss 1 8 (10) (1) Net current period other comprehensive loss (4) (9) (45) (58) Balance as of December 31, 2019 $ (549) $ (269) $ (22) $ (840) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (in millions) Currency translation adjustment: Liquidation of investments in foreign entities (1) $ (1) $ — $ (1) Total currency translation adjustment reclassifications for the period, net of taxes (1) — (1) Pension liability adjustment: Amortization of prior service cost (2) (4) (3) (3) Amortization of net loss (2) (7) (8) (7) Tax benefit (3) 3 2 3 Total pension liability adjustment reclassifications for the period, net of taxes (8) (9) (7) Cash flow hedge adjustment: Interest rate swaps (4) 10 (6) (26) Forward contracts (5) 2 — — Tax benefit (expense) (3) (2) 1 9 Total cash flow hedge adjustment reclassifications for the period, net of taxes 10 (5) (17) Total reclassifications for the period, net of taxes $ 1 $ (14) $ (25) ____________ (1) Amounts are net of gains on the related net investment hedges and were reclassified to gain (loss) on foreign currency transactions in our consolidated statements of operations upon liquidation of the related entities for the years ended December 31, 2019 and 2017. The related tax benefits reclassified to income tax benefit (expense) in our consolidated statements of operations for the years ended December 31, 2019 and 2017 were less than $1 million. (2) Reclassified to other non-operating income, net in our consolidated statements of operations. (3) Reclassified to income tax benefit (expense) in our consolidated statements of operations. (4) Reclassified to interest expense in our consolidated statements of operations. (5) Reclassified to franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties in our consolidated statements of operations. The amounts for the years ended December 31, 2018 and 2017 were less than $1 million. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of December 31, 2019, this segment included 703 managed hotels and 5,287 franchised hotels consisting of 942,307 total rooms. This segment also earns licensing fees from HGV and strategic partnerships for the right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment. As of December 31, 2019, the ownership segment included 65 properties totaling 20,557 rooms, comprising 57 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and five hotels owned or leased by unconsolidated affiliates. The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2019 2018 2017 (in millions) Franchise and licensing fees $ 1,691 $ 1,537 $ 1,326 Base and other management fees (1) 394 385 379 Incentive management fees 230 235 222 Management and franchise 2,315 2,157 1,927 Ownership 1,422 1,484 1,432 Segment revenues 3,737 3,641 3,359 Amortization of contract acquisition costs (29) (27) (17) Other revenues 101 98 105 Direct reimbursements from managed and franchised properties (2) 3,110 2,881 2,572 Indirect reimbursements from managed and franchised properties (2) 2,576 2,357 2,155 Intersegment fees elimination (1) (43) (44) (43) Total revenues $ 9,452 $ 8,906 $ 8,131 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes: Year Ended December 31, 2019 2018 2017 (in millions) Management and franchise (1) $ 2,315 $ 2,157 $ 1,927 Ownership (1) 125 108 120 Segment operating income 2,440 2,265 2,047 Amortization of contract acquisition costs (29) (27) (17) Other revenues, less other expenses 29 47 49 Net other expenses from managed and franchised properties (77) (85) (172) Depreciation and amortization (346) (325) (336) General and administrative (441) (443) (439) Gain on sale of assets, net 81 — — Operating income 1,657 1,432 1,132 Interest expense (414) (371) (351) Gain (loss) on foreign currency transactions (2) (11) 3 Loss on debt extinguishment — — (60) Other non-operating income, net 3 28 29 Income before income taxes $ 1,244 $ 1,078 $ 753 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, 2019 2018 (in millions) Management and franchise $ 11,455 $ 11,362 Ownership 1,610 927 Corporate and other 1,892 1,706 $ 14,957 $ 13,995 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2019 2018 2017 (in millions) Ownership $ 38 $ 42 $ 32 Corporate and other 43 30 26 $ 81 $ 72 $ 58 Total revenues by country were as follows: Year Ended December 31, 2019 2018 2017 (in millions) U.S. $ 7,423 $ 6,848 $ 6,046 All other 2,029 2,058 2,085 $ 9,452 $ 8,906 $ 8,131 Other than the U.S., there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31, 2019, 2018 and 2017. Property and equipment, net by country was as follows: December 31, 2019 2018 (in millions) U.S. $ 145 $ 109 United Kingdom 84 75 Japan 71 106 Germany 38 40 All other 42 37 $ 380 $ 367 Other than the countries included above, there were no countries that individually represented more than 10 percent of total property and equipment, net as of December 31, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of December 31, 2019, we had four performance guarantees, with expirations ranging from 2023 to 2039, and possible cash outlays totaling approximately $20 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. As of December 31, 2019 and 2018, we accrued current liabilities of $3 million and $12 million, respectively, for one performance guarantee related to a hotel owned by a VIE for which we were not the primary beneficiary. The performance guarantee period for the contract for which amounts have been accrued ended on December 31, 2019. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We do not have any letters of credit pledged as collateral against our performance guarantees. As of December 31, 2019, we guaranteed two loans for three hotels that we franchise or will franchise for a total of $30 million. One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023. Although we believe it is unlikely that material payments will be required under these guarantees, there can be no assurance that this will be the case. We do not have any letters of credit pledged as collateral against these guarantees. We hold interests in VIEs, for which we are not the primary beneficiary, that have entered into loan agreements with third parties. Under the terms of our contractual arrangements with certain of these VIEs, we may provide financial support to such entities under specified circumstances, including default of such a VIE under a third-party loan agreement, and may have the option to acquire a controlling financial interest in such an entity at a predetermined amount. In a circumstance that we provide financial support or exercise our option to acquire an additional interest in a VIE, we may be required to reassess whether we are the primary beneficiary of the VIE. If we determine that we are the primary beneficiary of the VIE, we would be required to consolidate the total assets, liabilities and results of operations of the VIE, which may be material upon consolidation. We have entered into agreements with owners of certain hotels that we currently manage or will franchise to finance capital expenditures at the hotels. As of December 31, 2019, we had remaining possible cash outlays of approximately $13 million, which we expect to fund in 2020. We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of December 31, 2019 and 2018, we had collected an aggregate of $350 million and $375 million in excess of amounts expended, respectively, across all programs. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Investments We hold unconsolidated equity investments in entities that own or lease properties that we manage. Amounts included in our consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 related to these management contracts primarily included: (i) management and franchise fees of $9 million, $10 million and $10 million, respectively; (ii) other revenues from managed and franchised properties of $12 million, $22 million and $22 million, respectively; and (iii) other expenses from managed and franchised properties of $12 million, $22 million and $22 million, respectively. Our consolidated balance sheet as of December 31, 2018 primarily included $19 million, of management and franchise contracts, net, related to one of the management contracts. Blackstone Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the related management and franchise contracts. As a result of their sales of Hilton common stock, Blackstone was no longer considered a related party of Hilton as of October 1, 2017. For the year ended December 31, 2017, amounts included in our consolidated statement of operations related to these management and franchise contracts, for the period of time Blackstone was considered a related party, included: (i) management and franchise fees of $24 million; (ii) other revenues from managed and franchised properties of $113 million; and (iii) other expenses from managed and franchised properties of $113 million. Additionally, our consolidated statements of cash flows included $11 million of contract acquisition costs related to these management and franchise contracts for the year ended December 31, 2017. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2019, 2018 and 2017 was $360 million, $330 million and $314 million, respectively. Income taxes, net of refunds, paid during the years ended December 31, 2019, 2018 and 2017 were $363 million , $288 million and $526 million, respectively. In 2017, non-cash financing activities of $25 million in connection with the spin-offs were excluded from our consolidated statements of cash flows. Refer to Note 12: "Leases" for supplemental disclosures of cash flow information related to operating and finance leases. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Condensed Consolidating Guarantor Financial Information Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (together, the "HWF Issuers"), which are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2025 Senior Notes and the 2027 Senior Notes. Hilton Domestic Operating Company Inc. ("HOC"), which is 100 percent owned by Hilton Worldwide Finance LLC, assumed the 2024 Senior Notes, issued the 2026 Senior Notes and, in June 2019, issued the 2030 Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by the Parent, HWP and substantially all of the Parent's direct and indirect wholly owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of our senior secured credit facilities will guarantee the Senior Notes. Additionally, the HWF Issuers are guarantors of the 2024 Senior Notes, the 2026 Senior Notes and the 2030 Senior Notes, and HOC is a guarantor of the 2025 Senior Notes and the 2027 Senior Notes. As of December 31, 2019, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guaranteed the Senior Notes (collectively, the "Non-Guarantors"). The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit facilities; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. Subsequent to December 31, 2019, we intend to merge the HWF Issuers with and into HOC, with HOC as the surviving entity. The following tables present the condensed consolidating financial information as of December 31, 2019 and 2018 and for the years ended December 31, 2019, 2018 and 2017, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. The condensed consolidating financial information presents the financial information for all periods based on the composition of the Guarantors as of December 31, 2019. December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 1 $ 10 $ 527 $ — $ 538 Restricted cash and cash equivalents — — 36 21 35 — 92 Accounts receivable, net — — 26 897 338 — 1,261 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 43 40 52 (5) 130 Other — 1 1 39 54 (23) 72 Total current assets — 1 107 1,007 1,046 (68) 2,093 Intangibles and Other Assets: Investments in subsidiaries (468) 3,846 7,645 (468) — (10,555) — Goodwill — — — 3,824 1,335 — 5,159 Brands — — — 4,405 472 — 4,877 Management and franchise contracts, net — — 1 448 331 — 780 Other intangible assets, net — — — 306 115 — 421 Operating lease right-of-use assets — — 31 8 828 — 867 Property and equipment, net — — 62 68 250 — 380 Deferred income tax assets 3 7 96 — 129 (135) 100 Other — 11 38 49 182 — 280 Total intangibles and other assets (465) 3,864 7,873 8,640 3,642 (10,690) 12,864 TOTAL ASSETS $ (465) $ 3,865 $ 7,980 $ 9,647 $ 4,688 $ (10,758) $ 14,957 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts payable, accrued expenses and other $ 17 $ 21 $ 277 $ 695 $ 715 $ (22) $ 1,703 Current maturities of long-term debt — — 19 — 18 — 37 Current portion of deferred revenues — — 107 218 13 (6) 332 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 799 — — 799 Total current liabilities 17 21 443 1,712 746 (68) 2,871 Long-term debt — 4,274 3,472 — 210 — 7,956 Operating lease liabilities — — 37 5 995 — 1,037 Deferred revenues — — — 755 72 — 827 Deferred income tax liabilities — — — 930 — (135) 795 Liability for guest loyalty program — — — 1,060 — — 1,060 Other — 38 182 82 581 — 883 Total liabilities 17 4,333 4,134 4,544 2,604 (203) 15,429 Equity (Deficit): Total Hilton stockholders' equity (deficit) (482) (468) 3,846 5,103 2,074 (10,555) (482) Noncontrolling interests — — — — 10 — 10 Total equity (deficit) (482) (468) 3,846 5,103 2,084 (10,555) (472) TOTAL LIABILITIES AND EQUITY (DEFICIT) $ (465) $ 3,865 $ 7,980 $ 9,647 $ 4,688 $ (10,758) $ 14,957 December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 52 37 80 (9) 160 Other — 1 1 36 154 (3) 189 Total current assets — 1 100 840 1,094 (52) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 765 $ (3) $ 1,549 Current maturities of long-term debt — — — — 16 — 16 Current portion of deferred revenues — — 106 239 14 (9) 350 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 Year Ended December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 275 $ 1,268 $ 156 $ (18) $ 1,681 Base and other management fees — — 1 207 124 — 332 Incentive management fees — — — 77 153 — 230 Owned and leased hotels — — — — 1,422 — 1,422 Other revenues — — 3 82 16 — 101 — — 279 1,634 1,871 (18) 3,766 Other revenues from managed and franchised properties — — 320 4,768 598 — 5,686 Total revenues — — 599 6,402 2,469 (18) 9,452 Expenses Owned and leased hotels — — — — 1,254 — 1,254 Depreciation and amortization — — 7 255 84 — 346 General and administrative — — 339 — 132 (30) 441 Other expenses — — 8 11 41 12 72 — — 354 266 1,511 (18) 2,113 Other expenses from managed and franchised properties — — 324 4,835 604 — 5,763 Total expenses — — 678 5,101 2,115 (18) 7,876 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (79) 1,301 435 — 1,657 Interest expense — (192) (166) (1) (55) — (414) Gain (loss) on foreign currency transactions — — 3 (24) 19 — (2) Other non-operating income (loss), net — (11) 7 (6) 13 — 3 Income (loss) before income taxes and equity in earnings from subsidiaries — (203) (235) 1,270 412 — 1,244 Income tax benefit (expense) — 49 51 (313) (145) — (358) Income (loss) before equity in earnings from subsidiaries — (154) (184) 957 267 — 886 Equity in earnings from subsidiaries 881 1,035 1,219 881 — (4,016) — Net income 881 881 1,035 1,838 267 (4,016) 886 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 881 $ 881 $ 1,035 $ 1,838 $ 262 $ (4,016) $ 881 Comprehensive income $ 823 $ 838 $ 1,042 $ 1,838 $ 245 $ (3,958) $ 828 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 823 $ 838 $ 1,042 $ 1,838 $ 240 $ (3,958) $ 823 Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 227 $ 1,182 $ 139 $ (18) $ 1,530 Base and other management fees — — 1 205 115 — 321 Incentive management fees — — — 78 157 — 235 Owned and leased hotels — — — — 1,484 — 1,484 Other revenues — — 6 78 14 — 98 — — 234 1,543 1,909 (18) 3,668 Other revenues from managed and franchised properties — — 245 4,376 617 — 5,238 Total revenues — — 479 5,919 2,526 (18) 8,906 Expenses Owned and leased hotels — — — — 1,332 — 1,332 Depreciation and amortization — — 6 237 82 — 325 General and administrative — — 323 — 130 (10) 443 Other expenses — — 7 21 31 (8) 51 — — 336 258 1,575 (18) 2,151 Other expenses from managed and franchised properties — — 236 4,466 621 — 5,323 Total expenses — — 572 4,724 2,196 (18) 7,474 Operating income (loss) — — (93) 1,195 330 — 1,432 Interest expense — (227) (106) — (38) — (371) Gain (loss) on foreign currency transactions — — 4 (99) 84 — (11) Other non-operating income (loss), net — (9) 3 16 18 — 28 Income (loss) before income taxes and equity in earnings from subsidiaries — (236) (192) 1,112 394 — 1,078 Income tax benefit (expense) — 57 39 (263) (142) — (309) Income (loss) before equity in earnings from subsidiaries — (179) (153) 849 252 — 769 Equity in earnings from subsidiaries 764 943 1,096 764 — (3,567) — Net income 764 764 943 1,613 252 (3,567) 769 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 764 $ 764 $ 943 $ 1,613 $ 247 $ (3,567) $ 764 Comprehensive income $ 707 $ 784 $ 932 $ 1,612 $ 187 $ (3,510) $ 712 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 707 $ 784 $ 932 $ 1,612 $ 182 $ (3,510) $ 707 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 143 $ 1,077 $ 118 $ (17) $ 1,321 Base and other management fees — — 1 195 128 — 324 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,432 — 1,432 Other revenues — — 31 70 11 (7) 105 — — 175 1,418 1,835 (24) 3,404 Other revenues from managed and franchised properties — — 159 3,986 582 — 4,727 Total revenues — — 334 5,404 2,417 (24) 8,131 Expenses Owned and leased hotels — — — — 1,269 — 1,269 Depreciation and amortization — — 5 242 89 — 336 General and administrative — — 327 — 118 (6) 439 Other expenses — — 17 29 27 (17) 56 — — 349 271 1,503 (23) 2,100 Other expenses from managed and franchised properties — — 147 4,147 605 — 4,899 Total expenses — — 496 4,418 2,108 (23) 6,999 Gain (loss) on sale of assets, net — — — (1) 1 — — Operating income (loss) — — (162) 985 310 (1) 1,132 Interest expense — (244) (61) — (47) 1 (351) Gain (loss) on foreign currency transactions — — 10 124 (131) — 3 Loss on debt extinguishment — (60) — — — — (60) Other non-operating income (loss), net — (3) 4 7 21 — 29 Income (loss) before income taxes and equity in earnings from subsidiaries — (307) (209) 1,116 153 — 753 Income tax benefit (expense) (3) 122 26 89 102 — 336 Income (loss) before equity in earnings from subsidiaries (3) (185) (183) 1,205 255 — 1,089 Equity in earnings from subsidiaries 1,087 1,272 1,455 1,087 — (4,901) — Net income 1,084 1,087 1,272 2,292 255 (4,901) 1,089 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 1,084 $ 1,087 $ 1,272 $ 2,292 $ 250 $ (4,901) $ 1,084 Comprehensive income $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 419 $ (5,098) $ 1,286 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 414 $ (5,098) $ 1,281 Year Ended December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (153) $ (30) $ 1,494 $ 213 $ (140) $ 1,384 Investing Activities: Capital expenditures for property and equipment — — (14) (7) (60) — (81) Payments received on other financing receivables — — — 3 — — 3 Proceeds from asset disposition — — — — 120 — 120 Capitalized software costs — — — (124) — — (124) Other — — — (30) (11) — (41) Net cash provided by (used in) investing activities — — (14) (158) 49 — (123) Financing Activities: Borrowings — 1,200 1,000 — — — 2,200 Repayment of debt — (1,505) (25) — (17) — (1,547) Debt issuance costs — (13) (16) — — — (29) Intercompany transfers 1,710 471 (888) (1,337) 44 — — Dividends paid (172) — — — — — (172) Repurchases of common stock (1,538) — — — — — (1,538) Intercompany dividends — — — — (140) 140 — Share-based compensation tax withholdings and other — — (27) — — — (27) Net cash provided by (used in) financing activities — 153 44 (1,337) (113) 140 (1,113) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (2) — (2) Net increase (decrease) in cash, restricted cash and cash equivalents — — — (1) 147 — 146 Cash, restricted cash and cash equivalents, beginning of period — — 37 32 415 — 484 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 31 $ 562 $ — $ 630 Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (185) $ (8) $ 1,128 $ 320 $ — $ 1,255 Investing Activities: Capital expenditures for property and equipment — — (9) (7) (56) — (72) Payments received on other financing receivables — — — 49 1 — 50 Capitalized software costs — — — (87) — — (87) Other — — — (6) (16) — (22) Net cash used in investing activities — — (9) (51) (71) — (131) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (985) — — (20) — (1,005) Debt issuance costs — — (21) — — — (21) Intercompany transfers 1,902 995 (1,444) (1,070) (383) — — Dividends paid (181) — — — — — (181) Repurchases of common stock (1,721) — — — — — (1,721) Share-based compensation tax withholdings and other — — (44) — — — (44) Other — — — (3) (1) — (4) Net cash provided by (used in) financing activities — 185 (9) (1,073) (403) — (1,300) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (10) — (10) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26) 4 (164) — (186) Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 32 $ 415 $ — $ 484 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113) $ (103) $ 950 $ 285 $ (170) $ 849 Investing Activities: Capital expenditures for property and equipment — — (12) (12) (34) — (58) Payments received on other financing receivables — — — 7 — — 7 Capitalized software costs — — — (75) — — (75) Other — (13) — (8) 3 (3) (21) Net cash used in investing activities — (13) (12) (88) (31) (3) (147) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852) — — (8) — (1,860) Debt issuance costs and redemption premium — (69) — — — — (69) Repayment of intercompany borrowings — — (3) — — 3 — Intercompany transfers 1,086 225 122 (865) (568) — — Dividends paid (195) — — — — — (195) Repurchases of common stock (891) — — — — — (891) Intercompany dividends — — — — (170) 170 — Cash transferred in spin-offs — — — — (501) — (501) Share-based compensation tax withholdings and other — — (31) — — — (31) Other — — — — (1) — (1) Net cash provided by (used in) financing activities — 126 88 (865) (1,246) 173 (1,724) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27) (3) (984) — (1,014) Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 63 $ 28 $ 579 $ — $ 670 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |
Quarterly Financial Information | Selected Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments, including normal recurring items, considered necessary for a fair presentation of our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,204 $ 2,484 $ 2,395 $ 2,369 $ 9,452 Operating income 312 478 519 348 1,657 Net income 159 261 290 176 886 Net income attributable to Hilton stockholders 158 260 288 175 881 Basic earnings per share (1) $ 0.54 $ 0.90 $ 1.01 $ 0.62 $ 3.07 Diluted earnings per share (1) $ 0.54 $ 0.89 $ 1.00 $ 0.61 $ 3.04 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,074 $ 2,291 $ 2,253 $ 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share (1) $ 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share (1) $ 0.51 $ 0.71 $ 0.54 $ 0.75 $ 2.50 ____________ |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of December 31, 2019, we managed, franchised, owned or leased 6,110 hotels and resorts, including timeshare properties, totaling 971,780 rooms in 119 countries and territories. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. ("Park") and Hilton Grand Vacations Inc. ("HGV"), respectively, (the "spin-offs"). |
Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities other than VIEs when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. |
New Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption. As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840) . On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13 ("ASU 2016-13"), Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The provisions of this ASU, and subsequent ASUs that were issued to clarify its application, are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, and are to be applied using a prospective approach with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We will adopt ASU 2016-13 on January 1, 2020. The presentation of credit losses for periods prior to January 1, 2020 will remain unchanged and in accordance with Receivables (Topic 310) . We do not expect the adoption of this ASU or its application in future periods to have a material effect on our consolidated financial statements. |
Reclassifications | Summary of Significant Accounting Policies On January 1, 2019, we adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016-02") using a modified-retrospective approach. The presentation of financial information for periods prior to January 1, 2019 remains unchanged and in accordance with Leases (Topic 840). See "Leases" and "Recently Issued Accounting Pronouncements" below for additional information. |
Product Information [Line Items] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, as well as from our owned and leased hotels. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and may also include fees from a licensing agreement for the use of certain Hilton marks and IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed and collected monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-brand credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and, in some cases, may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brand programs and shared services, which are paid from program fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue and number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotels. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. |
Contract Assets | Contract Assets Contract assets relate to incentive management fees for which the period of service has passed, but for which our right to consideration is conditional upon completing the requirements of the incentive fee period. Contract assets are included in other current assets in our consolidated balance sheets and are reclassified to accounts receivable when our right to consideration becomes unconditional. |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) ("Blackstone") (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying value. We evaluate goodwill for potential impairment by comparing the carrying values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in other expenses in our consolidated statements of operations in an amount equal to the excess of the carrying value over the fair value, limited to the total amount of goodwill allocated to that reporting unit. |
Intangible Assets, Finite-Lived | Intangible Assets with Finite Useful Lives We have certain finite-lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. Additionally, we capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger (13 to 16 years); management contract acquisition costs and development commissions (20 to 30 years); franchise contracts recorded at the Merger (12 to 13 years); franchise contract acquisition costs and development commissions (10 to 20 years); leases (12 to 35 years); Hilton Honors (16 years); and capitalized software costs (3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for capitalized software costs are included as investing activities. We review all finite-lived intangible assets for impairment when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated fair value in other expenses our consolidated statements of operations. |
Brands | Brands We manage, franchise, own and lease hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. At the time of the Merger, our portfolio consisted of Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton and our timeshare brand, Hilton Grand Vacations. As a result of the Merger, these brands were assigned a fair value using the relief from royalty valuation approach or the excess earnings method, depending on the contract type. All brands that were launched post-Merger, including LXR Hotels & Resorts, Canopy by Hilton, Signia by Hilton, Curio by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, Home2 Suites by Hilton and, our newest brand, Tempo by Hilton, were not assigned fair values and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our indefinite lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the brand intangible asset is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated current fair value is less |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net carrying value of the asset group, the excess of the net carrying value over the estimated fair value is recognized as an impairment loss in other expenses in our consolidated statements of operations. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. |
Leases | Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us, deferred rent and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in other expenses in our consolidated statements of operations. ROU assets of operating leases are included in operating lease right-of-use assets and ROU assets of finance leases are included in property and equipment, net in our consolidated balance sheets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. |
Contract Liabilities | Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract's performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; and (iii) amounts received when points are issued under Hilton Honors, but for which revenue is not yet recognized, since the related points are not yet redeemed. Contract liabilities related to advance consideration received for fees and certain indirect reimbursements are recognized as revenue over the term of the related contract. Contract liabilities related to amounts received for Hilton Honors are recognized as revenue when the points are redeemed for a free good or service by the Hilton Honors member, which, on average, occurs within two years of points issuance. Contract liabilities are included in deferred revenues in our consolidated balance sheets. |
Fair Value Measurement | Fair Value Measurements – Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below: • Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. We do not elect the fair value measurement option for any of our financial assets or liabilities. |
Derivative Instruments | Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: (i) a hedge of a forecasted transaction or the variability of cash flows to be paid ("cash flow hedge"); (ii) a hedge of the fair value of a recognized asset or liability ("fair value hedge") or (iii) a hedge of our investment in a foreign operation ("net investment hedge"). Changes in the fair value of a derivative that is qualified and designated as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in our consolidated statements of comprehensive income until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified and designated as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of the undesignated derivative instrument are reported in current period earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged in the consolidated statements of cash flows, while cash flows from undesignated derivative financial instruments are included as an investing activity. If we determine that we qualify for and will designate a derivative as a hedging instrument, we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in the consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. We perform an initial prospective assessment of hedge effectiveness on a quantitative basis between the inception date and the earlier of the first quarterly hedge effectiveness date or the issuance of the financial statements that include the hedged transaction. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative Method. This method compares the cumulative change in fair value of each hedging instrument to the cumulative change in fair value of a hypothetical hedging instrument, which has terms that identically match the critical terms of the respective hedged transactions. Thus, the hypothetical hedging instrument is presumed to perfectly offset the hedged cash flows. Ineffectiveness results when the cumulative change in the fair value of the hedging instrument exceeds the cumulative change in the fair value of the hypothetical hedging instrument. We discontinue hedge accounting prospectively when the derivative is no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. |
Currency Translation | Currency Translation The U.S. dollar ("USD") is our reporting currency and is the functional currency of our entities operating in the U.S. The functional currency for our entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in our consolidated balance sheets. Income and expense accounts are translated at the average foreign currency exchange rate for the period. Gains and losses from foreign currency exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized within gain (loss) on foreign currency transactions in our consolidated statements of |
Insurance | InsuranceWe are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers' compensation at our owned, leased and managed properties that participate in our insurance programs. We purchase insurance coverage for claim amounts that exceed our deductible obligations. In addition, through our captive insurance subsidiary, we participate in reinsurance arrangements that provide coverage for a certain portion of our deductibles and/or acts as a financial intermediary for claim payments on our self-insurance program, along with property and casualty insurance for certain international hotels that are reinsured by other third parties. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although we expect these amounts to ultimately offset when the related claims are settled. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost of claims that occurred during the covered period, which includes claims incurred but not reported, for which we will be responsible. These estimates are prepared with the assistance of outside actuaries and consultants. The ultimate cost of claims for a covered period may differ from our original estimates. |
Share-based Compensation | Share-based Compensation As part of the Hilton 2017 Omnibus Incentive Plan, we award time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our eligible employees: • RSUs generally vest in equal annual installments over two three • Options vest over three • Performance shares are settled at the end of a three We recognize these share-based payment transactions when services from the employees are received and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria, respectively. The measurement objective for these equity awards is the estimated fair value at the date of grant of the equity instruments that we are obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award classified as an equity instrument is recognized ratably over the requisite service period, which is the period during which an employee is required to provide service in exchange for an award. Liability awards are measured based on the award’s fair value and the fair value is remeasured at each reporting date until the date of settlement. Compensation expense for each period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered as of the reporting date) in the fair value of the instrument for each reporting period for such liability awards. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not considered probable until they occur, no compensation expense for these awards is recognized. Additionally, we have a retirement provision whereby we recognize total compensation expense of the awards for eligible participants through the date their awards are fully vested. We recognize share-based |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. In December 2017, H.R.1, known as the Tax Cuts and Jobs Act of 2017 (the "TCJ Act"), was signed into law and included widespread changes to the Internal Revenue Code including, among other items, the creation of new taxes on certain foreign earnings. The TCJ Act subjects a U.S. stockholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. In addition, the TCJ Act provides for foreign derived intangible income ("FDII") to be taxed at a lower effective rate than the statutory rate by allowing a tax deduction against the income. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. We have elected to recognize the current tax on GILTI as an expense in the period the tax is incurred. We include the current tax impact of both GILTI and the FDII deduction in our effective tax rate. See Note 13: "Income Taxes" for additional information on the effects of the TCJ Act on our consolidated financial statements. We use a prescribed recognition threshold for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is "more-likely-than-not" that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
Guest Loyalty Program [Member] | |
Product Information [Line Items] | |
Hilton Honors | Hilton Honors Hilton Honors is our guest loyalty program provided to our hotel and resort properties. Nearly all of our managed, franchised, owned and leased properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required level of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or program partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication and administrative expenses, as well as the estimated cost of award redemptions. When these payments are received we record amounts equal to the estimated cost per point of the future redemption obligation within liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheets. For the Hilton Honors fees that are charged to the participating properties, we allocate such fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton Honors member and Hilton's efforts to satisfy the future redemption of those Hilton Honors points. We engage outside actuaries to assist in determining the fair value of the future redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of points that will eventually be redeemed, which includes an estimate of "breakage" for points that will never be redeemed, and the cost of reimbursing properties and other third parties with respect to other redemption opportunities available to Hilton Honors members. When points are issued as a result of a stay at an owned or leased hotel, we recognize a reduction in owned and leased hotel revenues, since we are also the program sponsor. The transaction prices for the Hilton Honors points issued are reduced by the expected payments to the third parties that will provide the free or discounted room or service using the actuarial projection of the cost per point. The remaining transaction price is then further allocated to the points that are expected to be redeemed, adjusting the points that are issued for estimated breakage, and recognized when those points are redeemed. While the points are outstanding, both the estimate of the expected payments to third parties (cost per point) and the estimated breakage are reevaluated, and the combined estimate that yields the amount of revenue recognized when each point is ultimately redeemed is adjusted so that the final amount allocated to the substantive right of the customer to use the point is reflective of the amount retained by Hilton Honors for providing the free or discounted goods and services, net of the payments to third parties and points not redeemed. We also earn licensing fees from co-brand credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The co-brand license fee is allocated between two performance obligations based on their estimated standalone selling prices: (i) an IP license using the relief-from-royalty valuation method and (ii) substantive rights for free or discounted goods or services to the credit card customers using a cost plus method based on an evaluation of other third-party administrators. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities during the year ended December 31, 2019: (in millions) Balance as of December 31, 2018 $ 1,060 Cash received in advance and not recognized as revenue (1) 413 Revenue recognized (1) (288) Other (2) (144) Balance as of December 31, 2019 $ 1,041 ____________ (1) Includes $239 million related to Hilton Honors. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: December 31, 2019 2018 (in millions) Cash and cash equivalents $ 81 $ 71 Accounts receivable, net 15 15 Property and equipment, net 69 68 Deferred income tax assets 48 53 Other non-current assets 61 58 Accounts payable, accrued expenses and other 49 41 Long-term debt (1) 194 205 Other long-term liabilities 17 15 ____________ |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |
Dec. 31, 2019 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2017 $ 104 $ 5,086 $ 5,190 Foreign currency translation (5) (25) (30) Balance as of December 31, 2018 99 5,061 5,160 Foreign currency translation (1) — (1) Balance as of December 31, 2019 $ 98 $ 5,061 $ 5,159 ____________ (1) Amounts for the ownership reporting unit include gross carrying values of $438 million, $439 million and $444 million as of December 31, 2019, 2018 and 2017, respectively, and accumulated impairment losses of $340 million as of December 31, 2019, 2018 and 2017. | [1] |
Schedule of Other Intangible Assets | Finite-lived intangible assets were as follows: December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,163 $ (1,974) $ 189 Contract acquisition costs 604 (121) 483 Development commissions and other 127 (19) 108 $ 2,894 $ (2,114) $ 780 Other intangible assets: Leases (1) $ 290 $ (176) $ 114 Capitalized software costs 625 (399) 226 Hilton Honors (1) 338 (257) 81 Other (1) 34 (34) — $ 1,287 $ (866) $ 421 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873) $ 355 Contract acquisition costs 525 (101) 424 Development commissions and other 108 (15) 93 $ 2,861 $ (1,989) $ 872 Other intangible assets: Leases (1) $ 288 $ (161) $ 127 Capitalized software costs 503 (321) 182 Hilton Honors (1) 338 (236) 102 Other (1) 38 (34) 4 $ 1,167 $ (752) $ 415 ____________ (1) Represents intangible assets that were initially recorded at fair value as part of the Merger. | |
Amortization of Amortizing Intangible Assets | Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2019 2018 2017 (in millions) Recognized in depreciation and amortization expense (1) $ 286 $ 271 $ 277 Recognized as a reduction of franchise and licensing fees and base and other management fees 29 27 17 ____________ (1) Includes amortization expense of $202 million, $204 million and $206 million for the years ended December 31, 2019, 2018 and 2017, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. | |
Schedule of Future Amortization Expense of Other Intangible Assets | We estimate future amortization of our finite-lived intangible assets as of December 31, 2019 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2020 $ 276 $ 30 2021 126 28 2022 103 26 2023 62 25 2024 19 25 Thereafter 132 349 $ 718 $ 483 | |
[1] | Amounts for the ownership reporting unit include gross carrying values of $438 million, $439 million and $444 million as of December 31, 2019, 2018 and 2017, respectively, and accumulated impairment losses of $340 million as of December 31, 2019, 2018 and 2017. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2019 2018 (in millions) Land $ 11 $ 12 Buildings and leasehold improvements 382 391 Furniture and equipment 356 356 Construction-in-progress 20 24 Finance lease right-of-use assets 120 65 889 848 Accumulated depreciation (509) (481) $ 380 $ 367 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2019 2018 (in millions) Accrued employee compensation and benefits $ 554 $ 532 Accounts payable 303 283 Insurance reserves, current 95 199 Operating lease ROU liabilities 133 — Other liabilities and accrued expenses (1) 618 535 $ 1,703 $ 1,549 ____________ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2019, were as follows: December 31, 2019 2018 (in millions) Senior secured revolving credit facility with a weighted average rate of 2.98%, due 2024 $ 195 $ — Senior secured term loan facility with a rate of 3.54%, due 2026 2,619 3,119 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 4.875%, due 2030 1,000 — Finance lease liabilities with a weighted average rate of 5.83%, due 2020 to 2030 245 225 Other debt with a rate of 3.08%, due 2026 17 17 8,076 7,361 Less: unamortized deferred financing costs and discount (83) (79) Less: current maturities of long-term debt (1) (37) (16) $ 7,956 $ 7,266 ____________ (1) Represents current maturities of finance lease liabilities. |
Debt maturities | The contractual maturities of our long-term debt as of December 31, 2019 were as follows: Year (in millions) 2020 $ 37 2021 30 2022 22 2023 20 2024 1,217 Thereafter 6,750 $ 8,076 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities were as follows: December 31, 2019 2018 (in millions) Pension obligations $ 134 $ 145 Other long-term tax liabilities 369 395 Deferred employee compensation and benefits 118 113 Insurance reserves (1) 178 146 Other 84 64 $ 883 $ 863 ____________ (1) Obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 117 $ — $ 117 $ — Restricted cash equivalents 32 — 32 — Liabilities: Long-term debt (1) 7,731 5,230 — 2,834 Interest rate swaps 37 — 37 — December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Interest rate swaps 16 — 16 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Supplemental balance sheet information related to leases [Table Text Block] | Supplemental balance sheet information related to leases as of December 31, 2019 was as follows: (dollars Operating leases: Operating lease right-of-use assets $ 867 Accounts payable, accrued expenses and other 133 Operating lease liabilities 1,037 Finance leases: Property and equipment, net $ 52 Current maturities of long-term debt 37 Long-term debt 208 Weighted average remaining lease term: Operating leases 12.8 years Finance leases 8.6 years Weighted average discount rate: Operating leases 3.76 % Finance leases 5.83 % |
Components of Lease Expense | The components of lease expense for the year ended December 31, 2019 were as follows: (in millions) Operating lease expense for fixed payments $ 144 Finance lease expense: Amortization of ROU assets 30 Interest on lease liabilities 14 Variable lease expense (1) 168 ____________ (1) Includes amounts related to operating leases and interest payments on finance leases. |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2019 were as follows: Operating Finance Year (in millions) 2020 $ 178 $ 51 2021 172 42 2022 143 33 2023 128 30 2024 107 29 Thereafter 790 134 Total minimum lease payments 1,518 319 Less: imputed interest (348) (74) Total lease liabilities $ 1,170 $ 245 |
Supplemental cash flow information related to leases [Table Text Block] | Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 187 Financing cash flows from finance leases 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 48 Finance leases 61 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) U.S. income before tax $ 867 $ 881 $ 632 Foreign income before tax 377 197 121 Income before income taxes $ 1,244 $ 1,078 $ 753 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Current: Federal $ 190 $ 210 $ 239 State 60 53 59 Foreign 128 60 95 Total current 378 323 393 Deferred: Federal (61) (52) (667) State (5) (14) (35) Foreign 46 52 (27) Total deferred (20) (14) (729) Total provision (benefit) for income taxes $ 358 $ 309 $ (336) |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Statutory U.S. federal income tax provision $ 261 $ 226 $ 264 State income taxes, net of U.S. federal income tax benefit 47 37 19 Impact of foreign operations 31 26 4 Effects of the TCJ Act — 13 (600) Corporate restructuring — 9 — Changes in deferred tax asset valuation allowances 13 (6) (48) Provision for uncertain tax positions 16 16 38 Other, net (10) (12) (13) Provision (benefit) for income taxes $ 358 $ 309 $ (336) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2019 2018 (in millions) Deferred tax assets: Foreign net operating loss carryforwards $ 386 $ 389 Compensation 138 118 Reserves 33 18 Operating and finance lease liabilities 404 75 Deferred income 260 258 Foreign tax credit carryforwards 49 — Other 51 42 Total gross deferred tax assets 1,321 900 Less: valuation allowance (501) (399) Deferred tax assets 820 501 Deferred tax liabilities: Brands (1,133) (1,123) Finite-lived intangible assets (140) (157) Investment in foreign subsidiaries (32) (29) Operating and finance lease ROU assets (210) — Deferred tax liabilities (1,515) (1,309) Net deferred taxes $ (695) $ (808) |
Summary of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2019 2018 2017 (in millions) Balance at beginning of year $ 318 $ 283 $ 174 Additions for tax positions related to prior years 67 37 3 Additions for tax positions related to the current year 13 16 126 Reductions for tax positions related to prior years (3) (15) (10) Settlements 1 — (9) Lapse of statute of limitations (2) (3) (2) Currency translation adjustment 1 — 1 Balance at end of year $ 395 $ 318 $ 283 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 Service cost — — 2 3 1 2 Interest cost 14 12 10 9 2 2 Prior service cost (credit) (1) — — (3) 4 — — Actuarial loss (gain) 37 (14) 62 (39) 6 — Settlements and curtailments (2) (2) — — (1) (1) Effect of foreign currency exchange rates — — 13 (25) — (1) Benefits paid (24) (23) (14) (20) (4) (5) Benefit obligation at end of year $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 Change in Plan Assets: Fair value of plan assets at beginning of year $ 274 $ 306 $ 340 $ 386 $ 63 $ 65 Actual return on plan assets, net of expenses 53 (23) 57 (14) 6 (1) Employer contributions 17 16 9 10 4 4 Settlements (2) (2) — — (1) — Effect of foreign currency exchange rates — — 12 (22) — — Benefits paid (24) (23) (14) (20) (4) (5) Fair value of plan assets at end of year 318 274 404 340 68 63 Funded status at end of year (underfunded) (64) (83) (41) (35) (19) (20) Accumulated benefit obligation $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 ____________ (1) Relates to U.K. pension equalization requirements. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 (in millions) Other non-current assets $ — $ — $ — $ — $ 10 $ 7 Other liabilities (64) (83) (41) (35) (29) (27) Net amount recognized $ (64) $ (83) $ (41) $ (35) $ (19) $ (20) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 (in millions) Net actuarial loss (gain) $ (3) $ 22 $ (15) $ 29 $ (14) $ 13 $ 3 $ 3 $ — Prior service cost (credit) (4) (4) (3) (3) 4 — — — — Amortization of net loss (3) (3) (3) (3) (4) (4) (1) (1) — Net amount recognized $ (10) $ 15 $ (21) $ 23 $ (14) $ 9 $ 2 $ 2 $ — |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year | The estimated unrecognized prior service cost and net loss that will be amortized into net periodic pension cost (credit) during the year ended December 31, 2020 are as follows: Domestic Plan U.K. Plan International Plans (in millions) Unrecognized prior service cost (1) $ 4 $ — $ — Unrecognized net loss 4 4 1 Amount unrecognized $ 8 $ 4 $ 1 |
Schedule of Net Periodic Pension Cost (Credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 (in millions) Service cost $ 6 $ 6 $ 8 $ 2 $ 3 $ 2 $ 2 $ 2 $ 2 Interest cost 14 12 12 10 9 10 2 2 2 Expected return on plan assets (19) (19) (19) (19) (21) (19) (3) (3) (3) Amortization of prior service cost 4 3 3 — — — — — — Amortization of net loss 3 3 3 3 4 4 1 1 — Net periodic pension cost (credit) $ 8 $ 5 $ 7 $ (4) $ (5) $ (3) $ 2 $ 2 $ 1 |
Schedule of Weighted Average Assumptions Used | The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2019 2018 2019 2018 Discount rate 3.2 % 4.3 % 2.1 % 3.1 % 2.2 % 3.3 % Salary inflation N/A N/A 1.6 1.8 2.2 2.2 Pension inflation N/A N/A 2.8 3.0 1.9 1.8 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2019 2018 2017 2019 2018 2017 2019 2018 2017 Discount rate 4.3 % 3.6 % 4.0 % 3.1 % 2.6 % 2.8 % 3.1 % 2.9 % 3.0 % Expected return on plan assets 7.0 7.0 7.0 5.5 5.5 5.5 4.3 4.6 4.3 Salary inflation N/A N/A N/A 1.8 1.8 1.9 2.2 2.2 2.1 Pension inflation N/A N/A N/A 3.0 3.0 3.1 1.8 1.8 1.7 |
Schedule of Fair Value of Pension Assets | The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: December 31, 2019 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 25 $ 12 Equity funds — 61 2 Bond funds 2 40 — Alternative investments — 169 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 54 — Common collective trusts 316 — 44 Other — 55 — $ 318 $ 404 $ 68 December 31, 2018 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 34 $ 11 Equity funds — 33 2 Bond funds — 39 — Alternative investments — 140 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 44 — Common collective trusts 274 — 40 Other — 50 — $ 274 $ 340 $ 63 ____________ |
Schedule of Expected Benefit Payments | As of December 31, 2019, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2020 $ 33 $ 15 $ 12 2021 27 15 5 2022 27 15 5 2023 26 16 5 2024 26 16 6 2025-2029 119 83 23 $ 258 $ 160 $ 56 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Additional Information on Restricted Stock Units | The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) Number of shares granted 1.0 0.9 1.5 Weighted average grant date fair value per share $ 83.47 $ 79.31 $ 58.80 Aggregate intrinsic value of shares vested $ 92 $ 123 $ 78 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2019: Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) Outstanding as of December 31, 2018 2.0 $ 64.88 Granted 1.0 83.47 Vested (1.1) 59.90 Forfeited (0.1) 76.01 Outstanding as of December 31, 2019 1.8 77.35 |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) Number of options granted 0.8 0.6 0.7 Weighted average exercise price per share $ 83.11 $ 79.36 $ 58.40 Weighted average grant date fair value per share $ 21.08 $ 23.72 $ 13.96 |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Expected volatility (1) 23.51 % 27.91 % 24.00 % Dividend yield (2) 0.81 % 0.74 % 0.92% - 1.03% Risk-free rate (3) 2.47 % 2.73 % 1.93% - 2.03% Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) For the years ended December 31, 2019 and 2018, estimated based on the quarterly dividend and the three-month average stock price at the date of grant; for the year ended December 31, 2017, estimated based on the expected annualized dividend payment at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual terms of the options. |
Schedule of Stock Options Activity | The following table summarizes the activity of our options during the year ended December 31, 2019: Number of Shares Weighted Average Exercise Price per Share (in millions) Outstanding as of December 31, 2018 2.4 $ 58.50 Granted 0.8 83.11 Exercised (0.4) 52.37 Outstanding as of December 31, 2019 (1) 2.8 65.72 Exercisable as of December 31, 2019 (2) 1.4 53.93 ____________ (1) The aggregate intrinsic value was $129 million and the weighted average remaining contractual term was 7 years. |
Schedule of Additional Information on Performance Shares | The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2019 2018 2017 (in millions, except per share data) EBITDA CAGR: Number of shares granted 0.2 0.2 0.2 Weighted average grant date fair value per share $ 83.11 $ 79.36 $ 58.40 FCF CAGR: Number of shares granted 0.2 0.2 0.2 Weighted average grant date fair value per share $ 83.11 $ 79.36 $ 58.40 |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the year ended December 31, 2019: EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) (in millions) Outstanding as of December 31, 2018 0.4 $ 69.53 0.4 $ 69.53 Granted 0.2 83.11 0.2 83.11 Outstanding as of December 31, 2019 0.6 74.46 0.6 74.46 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"): Year Ended December 31, 2019 2018 2017 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 881 $ 764 $ 1,084 Denominator: Weighted average shares outstanding 287 302 324 Basic EPS $ 3.07 $ 2.53 $ 3.34 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 881 $ 764 $ 1,084 Denominator: Weighted average shares outstanding 290 305 327 Diluted EPS $ 3.04 $ 2.50 $ 3.32 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2016 $ (738) $ (251) $ (12) $ (1,001) Other comprehensive income (loss) before reclassifications 161 15 (4) 172 Amounts reclassified from accumulated other comprehensive loss 1 7 17 25 Net current period other comprehensive income 162 22 13 197 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 (513) (229) 1 (741) Other comprehensive income (loss) before reclassifications (70) (18) 17 (71) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70) (9) 22 (57) Cumulative effect of the adoption of ASU 2018-02 38 (22) — 16 Balance as of December 31, 2018 (545) (260) 23 (782) Other comprehensive loss before reclassifications (5) (17) (35) (57) Amounts reclassified from accumulated other comprehensive loss 1 8 (10) (1) Net current period other comprehensive loss (4) (9) (45) (58) Balance as of December 31, 2019 $ (549) $ (269) $ (22) $ (840) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (in millions) Currency translation adjustment: Liquidation of investments in foreign entities (1) $ (1) $ — $ (1) Total currency translation adjustment reclassifications for the period, net of taxes (1) — (1) Pension liability adjustment: Amortization of prior service cost (2) (4) (3) (3) Amortization of net loss (2) (7) (8) (7) Tax benefit (3) 3 2 3 Total pension liability adjustment reclassifications for the period, net of taxes (8) (9) (7) Cash flow hedge adjustment: Interest rate swaps (4) 10 (6) (26) Forward contracts (5) 2 — — Tax benefit (expense) (3) (2) 1 9 Total cash flow hedge adjustment reclassifications for the period, net of taxes 10 (5) (17) Total reclassifications for the period, net of taxes $ 1 $ (14) $ (25) ____________ (1) Amounts are net of gains on the related net investment hedges and were reclassified to gain (loss) on foreign currency transactions in our consolidated statements of operations upon liquidation of the related entities for the years ended December 31, 2019 and 2017. The related tax benefits reclassified to income tax benefit (expense) in our consolidated statements of operations for the years ended December 31, 2019 and 2017 were less than $1 million. (2) Reclassified to other non-operating income, net in our consolidated statements of operations. (3) Reclassified to income tax benefit (expense) in our consolidated statements of operations. (4) Reclassified to interest expense in our consolidated statements of operations. (5) Reclassified to franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties in our consolidated statements of operations. The amounts for the years ended December 31, 2018 and 2017 were less than $1 million. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2019 2018 2017 (in millions) Franchise and licensing fees $ 1,691 $ 1,537 $ 1,326 Base and other management fees (1) 394 385 379 Incentive management fees 230 235 222 Management and franchise 2,315 2,157 1,927 Ownership 1,422 1,484 1,432 Segment revenues 3,737 3,641 3,359 Amortization of contract acquisition costs (29) (27) (17) Other revenues 101 98 105 Direct reimbursements from managed and franchised properties (2) 3,110 2,881 2,572 Indirect reimbursements from managed and franchised properties (2) 2,576 2,357 2,155 Intersegment fees elimination (1) (43) (44) (43) Total revenues $ 9,452 $ 8,906 $ 8,131 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
Reconciliation of Segment Operating Income to Income from Continuing Operations Before Income Taxes | The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes: Year Ended December 31, 2019 2018 2017 (in millions) Management and franchise (1) $ 2,315 $ 2,157 $ 1,927 Ownership (1) 125 108 120 Segment operating income 2,440 2,265 2,047 Amortization of contract acquisition costs (29) (27) (17) Other revenues, less other expenses 29 47 49 Net other expenses from managed and franchised properties (77) (85) (172) Depreciation and amortization (346) (325) (336) General and administrative (441) (443) (439) Gain on sale of assets, net 81 — — Operating income 1,657 1,432 1,132 Interest expense (414) (371) (351) Gain (loss) on foreign currency transactions (2) (11) 3 Loss on debt extinguishment — — (60) Other non-operating income, net 3 28 29 Income before income taxes $ 1,244 $ 1,078 $ 753 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, 2019 2018 (in millions) Management and franchise $ 11,455 $ 11,362 Ownership 1,610 927 Corporate and other 1,892 1,706 $ 14,957 $ 13,995 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2019 2018 2017 (in millions) Ownership $ 38 $ 42 $ 32 Corporate and other 43 30 26 $ 81 $ 72 $ 58 |
Revenues by Country | Total revenues by country were as follows: Year Ended December 31, 2019 2018 2017 (in millions) U.S. $ 7,423 $ 6,848 $ 6,046 All other 2,029 2,058 2,085 $ 9,452 $ 8,906 $ 8,131 |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2019 2018 (in millions) U.S. $ 145 $ 109 United Kingdom 84 75 Japan 71 106 Germany 38 40 All other 42 37 $ 380 $ 367 |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |||
Condensed Balance Sheets | December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 1 $ 10 $ 527 $ — $ 538 Restricted cash and cash equivalents — — 36 21 35 — 92 Accounts receivable, net — — 26 897 338 — 1,261 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 43 40 52 (5) 130 Other — 1 1 39 54 (23) 72 Total current assets — 1 107 1,007 1,046 (68) 2,093 Intangibles and Other Assets: Investments in subsidiaries (468) 3,846 7,645 (468) — (10,555) — Goodwill — — — 3,824 1,335 — 5,159 Brands — — — 4,405 472 — 4,877 Management and franchise contracts, net — — 1 448 331 — 780 Other intangible assets, net — — — 306 115 — 421 Operating lease right-of-use assets — — 31 8 828 — 867 Property and equipment, net — — 62 68 250 — 380 Deferred income tax assets 3 7 96 — 129 (135) 100 Other — 11 38 49 182 — 280 Total intangibles and other assets (465) 3,864 7,873 8,640 3,642 (10,690) 12,864 TOTAL ASSETS $ (465) $ 3,865 $ 7,980 $ 9,647 $ 4,688 $ (10,758) $ 14,957 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts payable, accrued expenses and other $ 17 $ 21 $ 277 $ 695 $ 715 $ (22) $ 1,703 Current maturities of long-term debt — — 19 — 18 — 37 Current portion of deferred revenues — — 107 218 13 (6) 332 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 799 — — 799 Total current liabilities 17 21 443 1,712 746 (68) 2,871 Long-term debt — 4,274 3,472 — 210 — 7,956 Operating lease liabilities — — 37 5 995 — 1,037 Deferred revenues — — — 755 72 — 827 Deferred income tax liabilities — — — 930 — (135) 795 Liability for guest loyalty program — — — 1,060 — — 1,060 Other — 38 182 82 581 — 883 Total liabilities 17 4,333 4,134 4,544 2,604 (203) 15,429 Equity (Deficit): Total Hilton stockholders' equity (deficit) (482) (468) 3,846 5,103 2,074 (10,555) (482) Noncontrolling interests — — — — 10 — 10 Total equity (deficit) (482) (468) 3,846 5,103 2,084 (10,555) (472) TOTAL LIABILITIES AND EQUITY (DEFICIT) $ (465) $ 3,865 $ 7,980 $ 9,647 $ 4,688 $ (10,758) $ 14,957 | December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 52 37 80 (9) 160 Other — 1 1 36 154 (3) 189 Total current assets — 1 100 840 1,094 (52) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 765 $ (3) $ 1,549 Current maturities of long-term debt — — — — 16 — 16 Current portion of deferred revenues — — 106 239 14 (9) 350 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 | |
Condensed Statements of Income and Comprehensive Income | Year Ended December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 275 $ 1,268 $ 156 $ (18) $ 1,681 Base and other management fees — — 1 207 124 — 332 Incentive management fees — — — 77 153 — 230 Owned and leased hotels — — — — 1,422 — 1,422 Other revenues — — 3 82 16 — 101 — — 279 1,634 1,871 (18) 3,766 Other revenues from managed and franchised properties — — 320 4,768 598 — 5,686 Total revenues — — 599 6,402 2,469 (18) 9,452 Expenses Owned and leased hotels — — — — 1,254 — 1,254 Depreciation and amortization — — 7 255 84 — 346 General and administrative — — 339 — 132 (30) 441 Other expenses — — 8 11 41 12 72 — — 354 266 1,511 (18) 2,113 Other expenses from managed and franchised properties — — 324 4,835 604 — 5,763 Total expenses — — 678 5,101 2,115 (18) 7,876 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (79) 1,301 435 — 1,657 Interest expense — (192) (166) (1) (55) — (414) Gain (loss) on foreign currency transactions — — 3 (24) 19 — (2) Other non-operating income (loss), net — (11) 7 (6) 13 — 3 Income (loss) before income taxes and equity in earnings from subsidiaries — (203) (235) 1,270 412 — 1,244 Income tax benefit (expense) — 49 51 (313) (145) — (358) Income (loss) before equity in earnings from subsidiaries — (154) (184) 957 267 — 886 Equity in earnings from subsidiaries 881 1,035 1,219 881 — (4,016) — Net income 881 881 1,035 1,838 267 (4,016) 886 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 881 $ 881 $ 1,035 $ 1,838 $ 262 $ (4,016) $ 881 Comprehensive income $ 823 $ 838 $ 1,042 $ 1,838 $ 245 $ (3,958) $ 828 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 823 $ 838 $ 1,042 $ 1,838 $ 240 $ (3,958) $ 823 | Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 227 $ 1,182 $ 139 $ (18) $ 1,530 Base and other management fees — — 1 205 115 — 321 Incentive management fees — — — 78 157 — 235 Owned and leased hotels — — — — 1,484 — 1,484 Other revenues — — 6 78 14 — 98 — — 234 1,543 1,909 (18) 3,668 Other revenues from managed and franchised properties — — 245 4,376 617 — 5,238 Total revenues — — 479 5,919 2,526 (18) 8,906 Expenses Owned and leased hotels — — — — 1,332 — 1,332 Depreciation and amortization — — 6 237 82 — 325 General and administrative — — 323 — 130 (10) 443 Other expenses — — 7 21 31 (8) 51 — — 336 258 1,575 (18) 2,151 Other expenses from managed and franchised properties — — 236 4,466 621 — 5,323 Total expenses — — 572 4,724 2,196 (18) 7,474 Operating income (loss) — — (93) 1,195 330 — 1,432 Interest expense — (227) (106) — (38) — (371) Gain (loss) on foreign currency transactions — — 4 (99) 84 — (11) Other non-operating income (loss), net — (9) 3 16 18 — 28 Income (loss) before income taxes and equity in earnings from subsidiaries — (236) (192) 1,112 394 — 1,078 Income tax benefit (expense) — 57 39 (263) (142) — (309) Income (loss) before equity in earnings from subsidiaries — (179) (153) 849 252 — 769 Equity in earnings from subsidiaries 764 943 1,096 764 — (3,567) — Net income 764 764 943 1,613 252 (3,567) 769 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 764 $ 764 $ 943 $ 1,613 $ 247 $ (3,567) $ 764 Comprehensive income $ 707 $ 784 $ 932 $ 1,612 $ 187 $ (3,510) $ 712 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 707 $ 784 $ 932 $ 1,612 $ 182 $ (3,510) $ 707 | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 143 $ 1,077 $ 118 $ (17) $ 1,321 Base and other management fees — — 1 195 128 — 324 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,432 — 1,432 Other revenues — — 31 70 11 (7) 105 — — 175 1,418 1,835 (24) 3,404 Other revenues from managed and franchised properties — — 159 3,986 582 — 4,727 Total revenues — — 334 5,404 2,417 (24) 8,131 Expenses Owned and leased hotels — — — — 1,269 — 1,269 Depreciation and amortization — — 5 242 89 — 336 General and administrative — — 327 — 118 (6) 439 Other expenses — — 17 29 27 (17) 56 — — 349 271 1,503 (23) 2,100 Other expenses from managed and franchised properties — — 147 4,147 605 — 4,899 Total expenses — — 496 4,418 2,108 (23) 6,999 Gain (loss) on sale of assets, net — — — (1) 1 — — Operating income (loss) — — (162) 985 310 (1) 1,132 Interest expense — (244) (61) — (47) 1 (351) Gain (loss) on foreign currency transactions — — 10 124 (131) — 3 Loss on debt extinguishment — (60) — — — — (60) Other non-operating income (loss), net — (3) 4 7 21 — 29 Income (loss) before income taxes and equity in earnings from subsidiaries — (307) (209) 1,116 153 — 753 Income tax benefit (expense) (3) 122 26 89 102 — 336 Income (loss) before equity in earnings from subsidiaries (3) (185) (183) 1,205 255 — 1,089 Equity in earnings from subsidiaries 1,087 1,272 1,455 1,087 — (4,901) — Net income 1,084 1,087 1,272 2,292 255 (4,901) 1,089 Net income attributable to noncontrolling interests — — — — (5) — (5) Net income attributable to Hilton stockholders $ 1,084 $ 1,087 $ 1,272 $ 2,292 $ 250 $ (4,901) $ 1,084 Comprehensive income $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 419 $ (5,098) $ 1,286 Comprehensive income attributable to noncontrolling interests — — — — (5) — (5) Comprehensive income attributable to Hilton stockholders $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 414 $ (5,098) $ 1,281 |
Condensed Statements of Cash Flows | Year Ended December 31, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (153) $ (30) $ 1,494 $ 213 $ (140) $ 1,384 Investing Activities: Capital expenditures for property and equipment — — (14) (7) (60) — (81) Payments received on other financing receivables — — — 3 — — 3 Proceeds from asset disposition — — — — 120 — 120 Capitalized software costs — — — (124) — — (124) Other — — — (30) (11) — (41) Net cash provided by (used in) investing activities — — (14) (158) 49 — (123) Financing Activities: Borrowings — 1,200 1,000 — — — 2,200 Repayment of debt — (1,505) (25) — (17) — (1,547) Debt issuance costs — (13) (16) — — — (29) Intercompany transfers 1,710 471 (888) (1,337) 44 — — Dividends paid (172) — — — — — (172) Repurchases of common stock (1,538) — — — — — (1,538) Intercompany dividends — — — — (140) 140 — Share-based compensation tax withholdings and other — — (27) — — — (27) Net cash provided by (used in) financing activities — 153 44 (1,337) (113) 140 (1,113) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (2) — (2) Net increase (decrease) in cash, restricted cash and cash equivalents — — — (1) 147 — 146 Cash, restricted cash and cash equivalents, beginning of period — — 37 32 415 — 484 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 31 $ 562 $ — $ 630 | Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (185) $ (8) $ 1,128 $ 320 $ — $ 1,255 Investing Activities: Capital expenditures for property and equipment — — (9) (7) (56) — (72) Payments received on other financing receivables — — — 49 1 — 50 Capitalized software costs — — — (87) — — (87) Other — — — (6) (16) — (22) Net cash used in investing activities — — (9) (51) (71) — (131) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (985) — — (20) — (1,005) Debt issuance costs — — (21) — — — (21) Intercompany transfers 1,902 995 (1,444) (1,070) (383) — — Dividends paid (181) — — — — — (181) Repurchases of common stock (1,721) — — — — — (1,721) Share-based compensation tax withholdings and other — — (44) — — — (44) Other — — — (3) (1) — (4) Net cash provided by (used in) financing activities — 185 (9) (1,073) (403) — (1,300) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (10) — (10) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26) 4 (164) — (186) Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 32 $ 415 $ — $ 484 | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113) $ (103) $ 950 $ 285 $ (170) $ 849 Investing Activities: Capital expenditures for property and equipment — — (12) (12) (34) — (58) Payments received on other financing receivables — — — 7 — — 7 Capitalized software costs — — — (75) — — (75) Other — (13) — (8) 3 (3) (21) Net cash used in investing activities — (13) (12) (88) (31) (3) (147) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852) — — (8) — (1,860) Debt issuance costs and redemption premium — (69) — — — — (69) Repayment of intercompany borrowings — — (3) — — 3 — Intercompany transfers 1,086 225 122 (865) (568) — — Dividends paid (195) — — — — — (195) Repurchases of common stock (891) — — — — — (891) Intercompany dividends — — — — (170) 170 — Cash transferred in spin-offs — — — — (501) — (501) Share-based compensation tax withholdings and other — — (31) — — — (31) Other — — — — (1) — (1) Net cash provided by (used in) financing activities — 126 88 (865) (1,246) 173 (1,724) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27) (3) (984) — (1,014) Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 63 $ 28 $ 579 $ — $ 670 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments, including normal recurring items, considered necessary for a fair presentation of our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,204 $ 2,484 $ 2,395 $ 2,369 $ 9,452 Operating income 312 478 519 348 1,657 Net income 159 261 290 176 886 Net income attributable to Hilton stockholders 158 260 288 175 881 Basic earnings per share (1) $ 0.54 $ 0.90 $ 1.01 $ 0.62 $ 3.07 Diluted earnings per share (1) $ 0.54 $ 0.89 $ 1.00 $ 0.61 $ 3.04 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,074 $ 2,291 $ 2,253 $ 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share (1) $ 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share (1) $ 0.51 $ 0.71 $ 0.54 $ 0.75 $ 2.50 ____________ |
Organization (Details)
Organization (Details) | Dec. 31, 2019CountryHotelRoom |
Organization and basis of presentation [Line Items] | |
Number of hotel and resort properties | Hotel | 6,110 |
Number of hotel and resort rooms | Room | 971,780 |
Number of countries and territories | Country | 119 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)Rate | |
Accounting Policies [Line Items] | |
Ownership percentage of voting shares of a company at or above which VIEs are consolidated | 50.00% |
Accounting standards update 2016-02 | |
Accounting Policies [Line Items] | |
Tax impact on cumulative adjustment to equity | $ | $ 81 |
Cumulative effect of the adoption of ASU | $ | $ (256) |
Stock options [member] | |
Accounting Policies [Line Items] | |
Vesting period | 3 years |
Expiration period, options | 10 years |
Performance shares [member] | |
Accounting Policies [Line Items] | |
Vesting period | 3 years |
EBITDA CAGR [member] | |
Accounting Policies [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA") |
Free cash flow CAGR [member] | |
Accounting Policies [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR |
Minimum [member] | Performance shares [member] | |
Accounting Policies [Line Items] | |
Vesting rights, percentage | 0.00% |
Maximum [member] | Performance shares [member] | |
Accounting Policies [Line Items] | |
Vesting rights, percentage | 200.00% |
Target [Member] | Performance shares [member] | |
Accounting Policies [Line Items] | |
Vesting rights, percentage | 100.00% |
Minimum [member] | Restricted stock units (RSUs) [member] | |
Accounting Policies [Line Items] | |
Vesting period | 2 years |
Minimum [member] | Building and building improvements [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 8 years |
Minimum [member] | Furniture and equipment [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 3 years |
Minimum [member] | Computer equipment [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 3 years |
Maximum [member] | Restricted stock units (RSUs) [member] | |
Accounting Policies [Line Items] | |
Vesting period | 3 years |
Maximum [member] | Building and building improvements [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 40 years |
Maximum [member] | Furniture and equipment [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 8 years |
Maximum [member] | Computer equipment [member] | |
Accounting Policies [Line Items] | |
Useful life, property and equipment | 5 years |
Management contracts at Merger [member] | Minimum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 13 years |
Management contracts at Merger [member] | Maximum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 16 years |
Management contract acquisition costs and development commissions [member] | Minimum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 20 years |
Management contract acquisition costs and development commissions [member] | Maximum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 30 years |
Franchise contracts at Merger [member] | Minimum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 12 years |
Franchise contracts at Merger [member] | Maximum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 13 years |
Franchise contract acquisition costs and development commission [member] | Minimum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 10 years |
Franchise contract acquisition costs and development commission [member] | Maximum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 20 years |
Leases | Minimum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 12 years |
Leases | Maximum [member] | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 35 years |
Hilton Honors | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 16 years |
Capitalized software costs | |
Accounting Policies [Line Items] | |
Useful life, intangibles | 3 years |
Disposal (Details)
Disposal (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (Â¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sales price of an asset | $ 122 | ¥ 13,000 | ||
Gain on sale of assets, net | $ 81 | $ 0 | $ 0 |
Revenues from Contract with Cus
Revenues from Contract with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Contract with Customer, Liability [Line Items] | |||||
Contract liabilities balance | $ 1,041 | $ 1,060 | |||
Cash received in advance and not recognized as revenue | [1] | 413 | |||
Revenue recognized | (288) | [1] | $ (229) | $ (132) | |
Other | [2] | 144 | |||
Portion of cash received in advance and not recognized as revenue related to customer loyalty program | $ 239 | ||||
[1] | Includes $239Â million related to Hilton Honors. | ||||
[2] | Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 288 | [1] | $ 229 | $ 132 |
Loyalty Program Revenues [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 396 | |||
Expected timing of satisfaction of remaining performance obligations | two years | |||
Remaining performance obligation | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 645 | |||
[1] | Includes $239Â million related to Hilton Honors. |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 538 | $ 403 | |
Accounts receivable, net | 1,261 | 1,150 | |
Property and equipment, net | 380 | 367 | |
Deferred income tax assets | 100 | 90 | |
Other non-current assets | 280 | 239 | |
Accounts payable, accrued expenses and other | 1,703 | 1,549 | |
Other long-term liabilities | 883 | 863 | |
Finance lease liabilities | 245 | ||
Consolidated VIEs [member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 81 | 71 | |
Accounts receivable, net | 15 | 15 | |
Property and equipment, net | 69 | 68 | |
Deferred income tax assets | 48 | 53 | |
Other non-current assets | 61 | 58 | |
Accounts payable, accrued expenses and other | 49 | 41 | |
Long-term debt | [1] | 194 | 205 |
Other long-term liabilities | 17 | 15 | |
Finance lease liabilities | $ 177 | $ 187 | |
[1] | Includes finance lease liabilities of $177 million and $187 million as of December 31, 2019 and 2018, respectively. |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) | Jun. 01, 2019USD ($) | Dec. 31, 2018USD ($)EntityHotel |
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | Entity | 2 | ||
Deconsolidated VIE assets | $ 14,957 | $ 13,995 | |
Deconsolidated VIE liabilities | 15,429 | $ 13,437 | |
Management company [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | Hotel | 1 | ||
Deconsolidated VIE assets | $ 7 | ||
Deconsolidated VIE liabilities | $ 3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Goodwill [Line Items] | ||||
Goodwill | $ 5,159 | $ 5,160 | $ 5,190 | |
Foreign currency translation | (1) | (30) | ||
Ownership | ||||
Goodwill [Line Items] | ||||
Gross carrying value | [1] | 438 | 439 | 444 |
Accumulated impairment losses | [1] | 340 | 340 | 340 |
Goodwill | [1] | 98 | 99 | 104 |
Foreign currency translation | [1] | (1) | (5) | |
Management and franchise | ||||
Goodwill [Line Items] | ||||
Accumulated impairment losses | [2] | 0 | 0 | 0 |
Goodwill | [2] | 5,061 | 5,061 | $ 5,086 |
Foreign currency translation | [2] | $ 0 | $ (25) | |
[1] | Amounts for the ownership reporting unit include gross carrying values of $438 million, $439 million and $444 million as of December 31, 2019, 2018 and 2017, respectively, and accumulated impairment losses of $340 million as of December 31, 2019, 2018 and 2017. | |||
[2] | There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2019, 2018 and 2017. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | $ 2,894 | $ 2,861 | |
Other intangible assets, gross | 1,287 | 1,167 | |
Management and franchise contracts, accumulated amortization | (2,114) | (1,989) | |
Other intangible assets, accumulated amortization | (866) | (752) | |
Management and franchise contracts, net | 780 | 872 | |
Other intangible assets, net | 421 | 415 | |
Management and franchise contracts recorded at Merger | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | [1] | 2,163 | 2,228 |
Management and franchise contracts, accumulated amortization | [1] | (1,974) | (1,873) |
Management and franchise contracts, net | [1] | 189 | 355 |
Contract acquisition costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 604 | 525 | |
Management and franchise contracts, accumulated amortization | (121) | (101) | |
Management and franchise contracts, net | 483 | 424 | |
Development commissions and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 127 | 108 | |
Management and franchise contracts, accumulated amortization | (19) | (15) | |
Management and franchise contracts, net | 108 | 93 | |
Leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 290 | 288 |
Other intangible assets, accumulated amortization | [1] | (176) | (161) |
Other intangible assets, net | [1] | 114 | 127 |
Capitalized software costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 625 | 503 | |
Other intangible assets, accumulated amortization | (399) | (321) | |
Other intangible assets, net | 226 | 182 | |
Hilton Honors | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 338 | 338 |
Other intangible assets, accumulated amortization | [1] | (257) | (236) |
Other intangible assets, net | [1] | 81 | 102 |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 34 | 38 |
Other intangible assets, accumulated amortization | [1] | (34) | (34) |
Other intangible assets, net | [1] | $ 0 | $ 4 |
[1] | Represents intangible assets that were initially recorded at fair value as part of the Merger. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Recognized in depreciation and amortization expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | [1] | $ 286 | $ 271 | $ 277 |
Recognized in depreciation and amortization expense | Intangible assets recorded at fair value at the time of the Merger [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 202 | 204 | 206 | |
Recognized as a reduction of franchise and licensing fees and base and other management fees | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 29 | $ 27 | $ 17 | |
[1] | Includes amortization expense of $202 million, $204 million and $206 million for the years ended December 31, 2019, 2018 and 2017, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule Of Future Amortization (Details) $ in Millions | Dec. 31, 2019USD ($) |
Recognized in depreciation and amortization expense | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 276 |
2021 | 126 |
2022 | 103 |
2023 | 62 |
2024 | 19 |
Thereafter | 132 |
Amortizing intangible assets, net | 718 |
Recognized as a reduction of franchise and licensing fees and base and other management fees | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | 30 |
2021 | 28 |
2022 | 26 |
2023 | 25 |
2024 | 25 |
Thereafter | 349 |
Amortizing intangible assets, net | $ 483 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 11 | $ 12 |
Buildings and leasehold improvements | 382 | 391 |
Furniture and equipment | 356 | 356 |
Construction in progress | 20 | 24 |
Finance lease right-of-use assets | 120 | 65 |
Property and equipment, gross | 889 | 848 |
Accumulated depreciation | (509) | (481) |
Property and equipment, net | $ 380 | $ 367 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 60 | $ 54 | $ 59 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 554 | $ 532 | |
Accounts payable | 303 | 283 | |
Insurance reserves, current | 95 | 199 | |
Operating lease ROU liabiltiies | 133 | 0 | |
Other liabilities and accrued expenses | [1] | 618 | 535 |
Accounts payable, accrued expenses and other | $ 1,703 | $ 1,549 | |
[1] | Includes deposit liabilities related to hotel operations and application fees, promotional liabilities and income taxes payable, as well as accrued expenses related to taxes, interest and other. |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 01, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 8,076 | $ 7,361 | |||
Unamortized deferred financing costs and discount | (83) | (79) | |||
Current maturities of long-term debt | [1] | (37) | (16) | ||
Long-term debt | 7,956 | 7,266 | |||
Senior notes due 2024 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | 1,000 | |||
Debt instrument, interest rate, stated percentage | 4.25% | ||||
Senior notes due 2025 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 900 | 900 | |||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||
Senior notes due 2026 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,500 | 1,500 | |||
Debt Instrument, Face Amount | $ 1,500 | ||||
Debt instrument, interest rate, stated percentage | 5.125% | 5.125% | |||
Senior notes due 2027 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 600 | 600 | |||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||
Senior Notes due 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | 0 | |||
Debt Instrument, Face Amount | $ 1,000 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||
Finance lease liabilities [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 245 | 225 | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.83% | ||||
Other debt [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 17 | $ 17 | |||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.08% | ||||
[1] | Represents current maturities of finance lease liabilities. |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2017 |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 8,076 | $ 7,361 | |||
Repurchases of common stock, purchase price | $ 1,544 | 1,721 | $ 891 | ||
Senior secured term loan facility due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt discount | 0.25% | ||||
Debt instrument, interest rate, stated percentage | 3.54% | ||||
Long-term debt, gross | $ 2,619 | 3,119 | |||
Repayments of long-term debt | $ 500 | $ 300 | |||
Repayments of Debt | 500 | ||||
Debt instrument, decrease in basis spread on variable rate | 0.25% | ||||
Debt instrument, basis spread on variable rate | 1.75% | ||||
Unamortized deferred financing costs and discount | $ 8 | ||||
Unamortized deferred financing costs and fees | $ 10 | ||||
Senior secured revolving credit facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Interest Rate at Period End | 2.98% | ||||
Long-term debt, gross | $ 195 | 0 | |||
Senior notes due 2024 [member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.25% | ||||
Long-term debt, gross | $ 1,000 | 1,000 | |||
Senior notes due 2025 [member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||
Long-term debt, gross | $ 900 | 900 | |||
Senior notes due 2026 [member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.125% | 5.125% | |||
Long-term debt, gross | $ 1,500 | 1,500 | |||
Debt Instrument, Face Amount | $ 1,500 | ||||
Senior notes due 2027 [member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||
Long-term debt, gross | $ 600 | 600 | |||
Senior Notes due 2030 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 15 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||
Long-term debt, gross | $ 1,000 | $ 0 | |||
Debt Instrument, Face Amount | 1,000 | ||||
Senior notes due 2021 [member] | |||||
Debt Instrument [Line Items] | |||||
Write off of deferred debt issuance cost | 18 | ||||
Premium paid to redeem debt instrument | $ 42 | ||||
Debt Instrument, Face Amount | $ 1,500 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | 7 | ||||
Revolving credit facility, maximum borrowing capacity | 1,750 | ||||
Revolving credit facility, remaining borrowing capacity | $ 1,500 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | ||||
Repayments of Debt | $ 225 | ||||
Other stockholder [member] | |||||
Debt Instrument [Line Items] | |||||
Repurchases of common stock, purchase price | $ 1,171 | ||||
Letter of Credit [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | 250 | ||||
Letters of credit outstanding | $ 60 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 37 | |
2021 | 30 | |
2022 | 22 | |
2023 | 20 | |
2024 | 1,217 | |
Thereafter | 6,750 | |
Long-term debt, gross | $ 8,076 | $ 7,361 |
Other Liabilities - Other Long-
Other Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |||
Pension obligations | $ 134 | $ 145 | |
Other long-term tax liabilities | 369 | 395 | |
Deferred employee compensation and benefits | 118 | 113 | |
Insurance reserves | [1] | 178 | 146 |
Other | 84 | 64 | |
Other long-term liabilities | $ 883 | $ 863 | |
[1] | Obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Insurance claims, satisfied average term | three years |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 5,230 | $ 3,809 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 117 | 87 | |
Restricted cash equivalents | 32 | 18 | |
Interest rate swaps, assets | 16 | ||
Interest rate swaps, liabilities | 37 | ||
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 2,834 | 3,039 |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 117 | 87 | |
Restricted cash equivalents | 32 | 18 | |
Interest rate swaps, assets | 16 | ||
Long-term debt | [1] | 7,731 | $ 7,040 |
Interest rate swaps, liabilities | $ 37 | ||
[1] | The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 867 | $ 0 |
Accounts payable, accrued expenses and other | 133 | 0 |
Operating lease liabilities | 1,037 | $ 0 |
Property and equipment, net | 52 | |
Current maturities of long-term debt | 37 | |
Long-term debt | $ 208 | |
Weighted average remaining lease term, operating leases | 12 years 9 months 18 days | |
Weighted average remaining lease term, finance leases | 8 years 7 months 6 days | |
Weighted average discount rate, operating leases | 3.76% | |
Weighted average discount rate, finance leases | 5.83% |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Lessee Disclosure [Abstract] | ||
Operating lease expense for fixed payments | $ 144 | |
Finance lease expense, amortization of ROU assets | 30 | |
Finance lease expense, interest on lease liabilities | 14 | |
Variable lease expense | $ 168 | [1] |
[1] | Includes amounts related to operating leases and interest payments on finance leases. |
Leases Components of Lease Ex_2
Leases Components of Lease Expense 2018 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Rent Expense [Abstract] | ||
Operating lease, fixed lease expense | $ 225 | $ 183 |
Operating lease, variable lease expense | $ 142 | $ 101 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: operating cash flows from operating leases | $ 187 |
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases | 42 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 48 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 61 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee Disclosure [Abstract] | |
Finance leases, 2020 | $ 51 |
Finance leases, 2021 | 42 |
Finance leases, 2022 | 33 |
Finance leases, 2023 | 29 |
Finance leases, 2024 | 30 |
Finance leases, thereafter | 134 |
Finance lease, total minimum lease payments | 319 |
Less: imputed interest, finance leases | (74) |
Finance lease liabilities | 245 |
Operating leases, 2020 | 178 |
Operating leases, 2021 | 172 |
Operating leases, 2022 | 143 |
Operating leases, 2023 | 128 |
Operating leases, 2024 | 107 |
Operating leases, thereafter | 790 |
Operating leases, total minimum lease payments | 1,518 |
Less: imputed interest, operating leases | (348) |
Operating lease liabilities | $ 1,170 |
Leases Additional Information (
Leases Additional Information (Details) | Dec. 31, 2019Hotel |
Lessee Disclosure [Abstract] | |
Hotels under operating leases | 52 |
Hotels under finance leases | 6 |
Number of finance leases that were the liabilities of VIEs | 2 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before tax | $ 867 | $ 881 | $ 632 |
Foreign income before tax | 377 | 197 | 121 |
Income before income taxes | $ 1,244 | $ 1,078 | $ 753 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 190 | $ 210 | $ 239 |
State | 60 | 53 | 59 |
Foreign | 128 | 60 | 95 |
Total current | 378 | 323 | 393 |
Federal | (61) | (52) | (667) |
State | (5) | (14) | (35) |
Foreign | 46 | 52 | (27) |
Deferred income taxes | (20) | (14) | (729) |
Provision (benefit) for income taxes | $ 358 | $ 309 | $ (336) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax provision | $ 261 | $ 226 | $ 264 |
State income taxes, net of U.S. federal tax benefit | 47 | 37 | 19 |
Impact of foreign operations | 31 | 26 | 4 |
Effects of the TCJ Act | 0 | 13 | 600 |
Corporate restructuring | 0 | 9 | 0 |
Change in deferred tax asset valuation allowances | 13 | (6) | (48) |
Provision for uncertain tax positions | 16 | 16 | 38 |
Other, net | (10) | (12) | (13) |
Provision (benefit) for income taxes | $ 358 | $ 309 | $ (336) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Foreign net operating loss carryforwards | $ 386 | $ 389 |
Compensation | 138 | 118 |
Reserves | 33 | 18 |
Operating and finance lease liabilities | 404 | 75 |
Deferred income | 260 | 258 |
Foreign tax credit carryforwards | 49 | 0 |
Other | 51 | 42 |
Total gross deferred tax assets | 1,321 | 900 |
Less: valuation allowance | (501) | (399) |
Deferred tax assets | 820 | 501 |
Brands | (1,133) | (1,123) |
Finite lived intangible assets | (140) | (157) |
Investment in foreign subsidiaries | (32) | (29) |
Operating and finance lease ROU assets | 210 | 0 |
Deferred tax liabilities | (1,515) | (1,309) |
Net deferred taxes | $ (695) | $ (808) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 318 | $ 283 | $ 174 |
Additions for tax positions related to prior years | 67 | 37 | 3 |
Additions for tax positions related to the current year | 13 | 16 | 126 |
Reductions for tax positions related to prior years | (3) | (15) | (10) |
Settlements | (1) | 0 | (9) |
Lapse of statute of limitations | (2) | (3) | (2) |
Currency translation adjustment | 1 | 0 | 1 |
Balance at end of year | $ 395 | $ 318 | $ 283 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit for transition tax on historic foreign earnings | $ 2 | $ 15 | |
Provisional benefit related to TCJ Act | 600 | ||
Income tax expense | $ (358) | (309) | 336 |
Net operating loss carryforwards | 1,600 | ||
Deferred tax assets, foreign net operating loss carryforwards | 386 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 16 | ||
Net operating loss carryforwards expiration range | 2020 and 2039 | ||
Net operating loss carryforwards due to expire in one year | less than $1 million | ||
Deferred tax assets, net operating loss carryforwards not subject to expiration | $ 370 | ||
Net operating loss carryforwards valuation allowance | 376 | ||
Income tax examination, estimate of possible loss | 817 | ||
Accrual related to IRS proposed additional tax owed | 58 | ||
Valuation allowance on foreign deferred tax assets generated in current year | 18 | ||
Valuation allowance released from foreign deferred tax assets | 5 | ||
Valuation allowance on deferred tax assets resulting in no net income tax expense or benefit | 89 | ||
Valuation allowance on foreign deferred tax assets | 51 | ||
Deferred tax assets for foreign tax credit carryforwards | 49 | 0 | |
Valuation allowance on deferred tax asset, tax credit carryforward, foreign | 49 | ||
Deferred tax asset revaluation, decrease in valuation allowance | 11 | ||
Deferred tax asset valuation allowance total increase | 102 | ||
Interest and penalties expense related to uncertain tax positions | 12 | 6 | 3 |
Accrual for interest and penalties | 52 | 40 | |
Unrecognized tax benefits that would impact effective tax rate | $ 380 | 310 | |
Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 9 | ||
Remeasurement of DTAs/DTLs, uncertain tax position reserves and other tax liabilities [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | $ 569 | ||
Adjustment to complete accounting related to TCJ Act | 10 | ||
Pre-enactment [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate, percent | 35.00% | ||
Post-enactment [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate, percent | 21.00% | ||
Remeasurement of U.S. DTAs/DTLs [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | $ 452 | ||
Uncertain tax position reserves [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | 33 | ||
Other tax liabilities [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | 84 | ||
Recognition of tax benefits [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit for transition tax on historic foreign earnings | $ 16 | ||
Outside basis difference in controlled foreign corporation [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Adjustment to complete accounting related to TCJ Act | 31 | ||
U.S. DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 12 | ||
Remeasurement of DTAs/DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | $ (3) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
United States | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 357 | $ 384 | |
Service cost | 0 | 0 | |
Interest cost | 14 | 12 | |
Prior service cost (credit) | [1] | 0 | 0 |
Actuarial loss (gain) | 37 | (14) | |
Settlements and curtailments | (2) | (2) | |
Effect of foreign currency exchange rates | 0 | 0 | |
Benefits paid | (24) | (23) | |
Benefit obligation at end of year | 382 | 357 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 274 | 306 | |
Actual return on plan assets, net of expenses | 53 | (23) | |
Employer contributions | 17 | 16 | |
Settlements | (2) | (2) | |
Effect of foreign currency exchange rates | 0 | 0 | |
Benefits paid | (24) | (23) | |
Fair value of plan assets at end of year | 318 | 274 | |
Funded status at end of year (underfunded) | (64) | (83) | |
Defined benefit plan, accumulated benefit obligation | 382 | 357 | |
U.K. plan [member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 375 | 443 | |
Service cost | 2 | 3 | |
Interest cost | 10 | 9 | |
Prior service cost (credit) | [1] | (3) | 4 |
Actuarial loss (gain) | 62 | (39) | |
Settlements and curtailments | 0 | 0 | |
Effect of foreign currency exchange rates | 13 | (25) | |
Benefits paid | (14) | (20) | |
Benefit obligation at end of year | 445 | 375 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 340 | 386 | |
Actual return on plan assets, net of expenses | 57 | (14) | |
Employer contributions | 9 | 10 | |
Settlements | 0 | 0 | |
Effect of foreign currency exchange rates | 12 | (22) | |
Benefits paid | (14) | (20) | |
Fair value of plan assets at end of year | 404 | 340 | |
Funded status at end of year (underfunded) | (41) | (35) | |
Defined benefit plan, accumulated benefit obligation | 445 | 375 | |
International plans [member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 83 | 86 | |
Service cost | 1 | 2 | |
Interest cost | 2 | 2 | |
Prior service cost (credit) | [1] | 0 | 0 |
Actuarial loss (gain) | 6 | 0 | |
Settlements and curtailments | (1) | (1) | |
Effect of foreign currency exchange rates | 0 | (1) | |
Benefits paid | (4) | (5) | |
Benefit obligation at end of year | 87 | 83 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 63 | 65 | |
Actual return on plan assets, net of expenses | 6 | (1) | |
Employer contributions | 4 | 4 | |
Settlements | (1) | 0 | |
Effect of foreign currency exchange rates | 0 | 0 | |
Benefits paid | (4) | (5) | |
Fair value of plan assets at end of year | 68 | 63 | |
Funded status at end of year (underfunded) | (19) | (20) | |
Defined benefit plan, accumulated benefit obligation | $ 87 | $ 83 | |
[1] | Relates to U.K. pension equalization requirements. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (64) | $ (83) |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (41) | (35) |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (19) | (20) |
Other non-current assets | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 10 | 7 |
Other liabilities [member] | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (64) | (83) |
Other liabilities [member] | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (41) | (35) |
Other liabilities [member] | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (29) | $ (27) |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (3) | $ 22 | $ (15) |
Prior service cost (credit) | (4) | (4) | (3) |
Amortization of net loss | (3) | (3) | (3) |
Net amount recognized in other comprehensive income (loss) | (10) | 15 | (21) |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 29 | (14) | 13 |
Prior service cost (credit) | (3) | 4 | 0 |
Amortization of net loss | (3) | (4) | (4) |
Net amount recognized in other comprehensive income (loss) | 23 | (14) | 9 |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 3 | 3 | 0 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss | (1) | (1) | 0 |
Net amount recognized in other comprehensive income (loss) | $ 2 | $ 2 | $ 0 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Amounts in AOCI to be Recognized over Next Fiscal Year (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service cost | $ 4 |
Unrecognized net loss | 4 |
Amount unrecognized | 8 |
U.K. plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service cost | 0 |
Unrecognized net loss | 4 |
Amount unrecognized | 4 |
International plans [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Unrecognized prior service cost | 0 |
Unrecognized net loss | 1 |
Amount unrecognized | $ 1 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6 | $ 6 | $ 8 |
Interest cost | 14 | 12 | 12 |
Expected return on plan assets | (19) | (19) | (19) |
Amortization of prior service cost | 4 | 3 | 3 |
Amortization of net loss | 3 | 3 | 3 |
Net periodic pension cost (credit) | 8 | 5 | 7 |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 3 | 2 |
Interest cost | 10 | 9 | 10 |
Expected return on plan assets | (19) | (21) | (19) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 3 | 4 | 4 |
Net periodic pension cost (credit) | (4) | (5) | (3) |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | (3) | (3) | (3) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 1 | (1) | 0 |
Net periodic pension cost (credit) | $ 2 | $ 2 | $ 1 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.20% | 4.30% | |
Discount rate, net periodic pension cost | 4.30% | 3.60% | 4.00% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.10% | 3.10% | |
Salary inflation | 1.60% | 1.80% | |
Pension inflation | 2.80% | 3.00% | |
Discount rate, net periodic pension cost | 3.10% | 2.60% | 2.80% |
Expected return on plan assets | 5.50% | 5.50% | 5.50% |
Salary inflation, net periodic pension cost | 1.80% | 1.80% | 1.90% |
Pension inflation, net periodic pension cost | 3.00% | 3.00% | 3.10% |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.20% | 3.30% | |
Salary inflation | 2.20% | 2.20% | |
Pension inflation | 1.90% | 1.80% | |
Discount rate, net periodic pension cost | 3.10% | 2.90% | 3.00% |
Expected return on plan assets | 4.30% | 4.60% | 4.30% |
Salary inflation, net periodic pension cost | 2.20% | 2.20% | 2.10% |
Pension inflation, net periodic pension cost | 1.80% | 1.80% | 1.70% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 318 | $ 274 | $ 306 | |
United States | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2 | 0 | ||
United States | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
United States | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
United States | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 316 | 274 | |
United States | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
U.K. plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 404 | 340 | 386 | |
U.K. plan [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 25 | 34 | ||
U.K. plan [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 61 | 33 | ||
U.K. plan [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 40 | 39 | ||
U.K. plan [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. plan [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 54 | 44 | |
U.K. plan [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 169 | 140 | ||
U.K. plan [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
U.K. plan [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 55 | 50 | |
International plans [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 68 | 63 | $ 65 | |
International plans [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | 11 | ||
International plans [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2 | 2 | ||
International plans [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4 | 4 | ||
International plans [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International plans [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | 6 | ||
International plans [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
International plans [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
International plans [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 44 | 40 | |
International plans [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 0 | $ 0 | |
[1] | Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 33 |
2021 | 27 |
2022 | 27 |
2023 | 26 |
2024 | 26 |
2025-2029 | 119 |
Defined benefit plan expected future benefit payments | 258 |
U.K. plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 15 |
2021 | 15 |
2022 | 15 |
2023 | 16 |
2024 | 16 |
2025-2029 | 83 |
Defined benefit plan expected future benefit payments | 160 |
International plans [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 12 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | 6 |
2025-2029 | 23 |
Defined benefit plan expected future benefit payments | $ 56 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plans, plan assets | $ 345 | $ 297 | |
Multiemployer plans, accumulated benefit obligation | 407 | 380 | |
Defined contribution plan, cost | $ 17 | $ 16 | $ 15 |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $10 million | ||
UK and international plans [member] | Debt and equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 75 percent | 75 percent | |
UK and international plans [member] | Bond funds [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 25 percent | 25 percent | |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $4 million | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $13 million | ||
United States | Debt securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 20 percent | 20 percent | |
United States | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 80 percent | 80 percent |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Arrangement with Individual, Allocated Share-based Compensation Expense | $ 154 | $ 127 | $ 121 |
Tax benefit | 41 | 42 | 49 |
Accrued liabilities | 16 | 15 | |
Unrecognized compensation costs related to unvested awards | $ 122 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 7 months 6 days | ||
Shares of common stock reserved for future issuance | 14.2 | ||
Incremental share based compensation expense | $ 2.3 | $ 3.3 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Aggregate intrinsic value of shares vested | $ 1 | $ 1 | |
Restricted stock units (RSUs) [member] | |||
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 1 | 0.9 | 1.5 |
Weighted average grant date fair value per share | $ 83.47 | $ 79.31 | $ 58.80 |
Aggregate intrinsic value of shares vested | $ 92,000,000 | $ 123,000,000 | $ 78,000,000 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) - Restricted stock units (RSUs) [member] - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 2 | ||
Number of shares granted | 1 | 0.9 | 1.5 |
Vested | (1.1) | ||
Forfeited | (0.1) | ||
Outstanding, ending balance | 1.8 | 2 | |
Weighted average grant date fair value, outstanding beginning balance | $ 64.88 | ||
Weighted average grant date fair value per share | 83.47 | $ 79.31 | $ 58.80 |
Weighted average grant date fair value, vested | 59.90 | ||
Weighted average grant date fair value, forfeited | 76.01 | ||
Weighted average grant date fair value, outstanding ending balance | $ 77.35 | $ 64.88 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Additional Information on Stock Options (Details) - Stock options [member] - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 0.8 | 0.6 | 0.7 |
Weighted average exercise price per share | $ 83.11 | $ 79.36 | $ 58.40 |
Weighted average grant date fair value per share | $ 21.08 | $ 23.72 | $ 13.96 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options [member] | 12 Months Ended | |||
Dec. 31, 2019Rate | Dec. 31, 2018Rate | Dec. 31, 2017Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 23.51% | 27.91% | 24.00% |
Dividend yield | [2] | 0.81% | 0.74% | |
Risk-free interest rate | [3] | 2.47% | 2.73% | |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
Minimum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 0.92% | |||
Risk-free interest rate | 1.93% | |||
Maximum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | 1.03% | |||
Risk-free interest rate | 2.03% | |||
[1] | Estimated using historical movement of Hilton's stock price | |||
[2] | For the years ended December 31, 2019 and 2018, estimated based on the quarterly dividend and the three-month average stock price at the date of grant; for the year ended December 31, 2017, estimated based on the expected annualized dividend payment at the date of grant. | |||
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |||
[4] | Estimated using the average of the vesting periods and the contractual terms of the options. |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Stock Options Activity (Details) - Stock options [member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding | 2.8 | [1] | 2.4 | ||
Granted | 0.8 | 0.6 | 0.7 | ||
Exercised | (0.4) | ||||
Exercisable, ending balance | [2] | 1.4 | |||
Weighted average exercise price, beginning balance | $ 58.50 | ||||
Weighted average exercise price, granted | 83.11 | $ 79.36 | $ 58.40 | ||
Weighted average exercise price, exercised | 52.37 | ||||
Weighted average exercise price, ending balance | 65.72 | $ 58.50 | |||
Weighted average exercise price, exercisable | $ 53.93 | ||||
Outstanding, aggregate intrinsic value | $ 129 | ||||
Outstanding, weighted average remaining contractual term | 7 years | ||||
Exercisable, aggregate intrinsic value | $ 83 | ||||
Exercisable, weighted average remaining contractual term | 6 years | ||||
[1] | The aggregate intrinsic value was $129Â million and the weighted average remaining contractual term was 7 years. | ||||
[2] | The aggregate intrinsic value was $83Â million and the weighted average remaining contractual term was 6 years |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of shares vested | $ 1 | $ 1 | |
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0.2 | 0.2 | 0.2 |
Weighted average grant date fair value per share | $ 83.11 | $ 79.36 | $ 58.40 |
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0.2 | 0.2 | 0.2 |
Weighted average grant date fair value per share | $ 83.11 | $ 79.36 | $ 58.40 |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 0.6 | 0.4 | |
Number of shares granted | 0.2 | 0.2 | 0.2 |
Weighted average grant date fair value, outstanding beginning balance | $ 69.53 | ||
Weighted average grant date fair value per share | 83.11 | $ 79.36 | $ 58.40 |
Weighted average grant date fair value, outstanding ending balance | $ 74.46 | $ 69.53 | |
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 0.6 | 0.4 | |
Number of shares granted | 0.2 | 0.2 | 0.2 |
Weighted average grant date fair value, outstanding beginning balance | $ 69.53 | ||
Weighted average grant date fair value per share | 83.11 | $ 79.36 | $ 58.40 |
Weighted average grant date fair value, outstanding ending balance | $ 74.46 | $ 69.53 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Earnings per share, Basic [Abstract] | ||||||||||||
Net income attributable to Hilton stockholders | $ 881 | $ 764 | $ 1,084 | |||||||||
Weighted average shares outstanding | 287 | 302 | 324 | |||||||||
Basic EPS | [1] | $ 0.62 | $ 1.01 | $ 0.90 | $ 0.54 | $ 0.76 | $ 0.55 | $ 0.72 | $ 0.51 | $ 3.07 | $ 2.53 | $ 3.34 |
Earnings Per Share, Diluted [Abstract] | ||||||||||||
Net income attributable to Hilton stockholders | $ 881 | $ 764 | $ 1,084 | |||||||||
Weighted average shares outstanding | 290 | 305 | 327 | |||||||||
Diluted EPS | [1] | $ 0.61 | $ 1 | $ 0.89 | $ 0.54 | $ 0.75 | $ 0.54 | $ 0.71 | $ 0.51 | $ 3.04 | $ 2.50 | $ 3.32 |
Antidilutive securities excluded from computation of EPS, Amount | Approximately 1 million | Approximately 1 million | Approximately 1 million | |||||||||
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (782) | |||
Amounts reclassified from accumulated other comprehensive loss | (1) | $ 14 | $ 25 | |
Spin-offs of Park and HGV | (4,211) | |||
Ending balance | (840) | (782) | ||
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | (545) | (513) | (738) |
Other comprehensive income (loss) before reclassifications | [1] | (5) | (70) | 161 |
Amounts reclassified from accumulated other comprehensive loss | [1] | 1 | 0 | 1 |
Net current period other comprehensive income (loss) | [1] | (4) | (70) | 162 |
Spin-offs of Park and HGV | 63 | |||
Ending balance | [1] | (549) | (545) | (513) |
Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (260) | (229) | (251) | |
Other comprehensive income (loss) before reclassifications | (17) | (18) | 15 | |
Amounts reclassified from accumulated other comprehensive loss | 8 | 9 | 7 | |
Net current period other comprehensive income (loss) | (9) | (9) | 22 | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | (269) | (260) | (229) | |
Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 23 | 1 | (12) | |
Other comprehensive income (loss) before reclassifications | (35) | 17 | (4) | |
Amounts reclassified from accumulated other comprehensive loss | (10) | 5 | 17 | |
Net current period other comprehensive income (loss) | (45) | 22 | 13 | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | (22) | 23 | 1 | |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (782) | (741) | (1,001) | |
Other comprehensive income (loss) before reclassifications | (57) | (71) | 172 | |
Amounts reclassified from accumulated other comprehensive loss | (1) | 14 | 25 | |
Net current period other comprehensive income (loss) | (58) | (57) | 197 | |
Spin-offs of Park and HGV | 63 | |||
Ending balance | $ (840) | (782) | $ (741) | |
Accounting standards update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | 0 | |||
Accounting standards update 2018-02 | Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | 38 | |||
Accounting standards update 2018-02 | Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | (22) | |||
Accounting standards update 2018-02 | Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | 0 | |||
Accounting standards update 2018-02 | Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | $ 16 | |||
[1] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax benefit | $ 3 | $ 3 | $ (8) | ||
Tax benefit (expense) | 15 | (8) | (7) | ||
Total reclassifications for the period, net of taxes | 1 | (14) | (25) | ||
Currency translation adjustment | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Liquidation of investments in foreign entities | [1] | $ (1) | 0 | $ (1) | |
Tax benefit | less than $1 million | less than $1 million | |||
Total currency translation adjustment reclassifications for the period, net of taxes | $ (1) | 0 | $ (1) | ||
Total reclassifications for the period, net of taxes | [2] | (1) | 0 | (1) | |
Pension liability adjustment | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of prior service cost | [3] | (4) | (3) | (3) | |
Amortization of net loss | [3] | (7) | (8) | (7) | |
Tax benefit | [4] | 3 | 2 | 3 | |
Total pension liability adjustment reclassifications for the period, net of taxes | (8) | (9) | (7) | ||
Total reclassifications for the period, net of taxes | (8) | (9) | (7) | ||
Cash flow hedge adjustment | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest rate swaps | [5] | 10 | (6) | (26) | |
Forward contracts | 2 | [6] | 0 | 0 | |
Tax benefit (expense) | [4] | (2) | 1 | 9 | |
Total cash flow hedge adjustment reclassifications for the period, net of taxes | 10 | (5) | (17) | ||
Total reclassifications for the period, net of taxes | $ 10 | $ (5) | $ (17) | ||
[1] | Amounts are net of gains on the related net investment hedges and were reclassified to gain (loss) on foreign currency transactions in our consolidated statements of operations upon liquidation of the related entities for the years ended December 31, 2019 and 2017. The related tax benefits reclassified to income tax benefit (expense) in our consolidated statements of operations for the years ended December 31, 2019 and 2017 were less than $1 million. | ||||
[2] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | ||||
[3] | Reclassified to other non-operating income, net in our consolidated statements of operations. | ||||
[4] | Reclassified to income tax benefit (expense) in our consolidated statements of operations. | ||||
[5] | Reclassified to interest expense in our consolidated statements of operations. | ||||
[6] | Reclassified to franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties in our consolidated statements of operations. The amounts for the years ended December 31, 2018 and 2017 were less than $1 million. |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Details) | 12 Months Ended |
Dec. 31, 2019HotelRoomSegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Management and franchise | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 703 |
Number of franchised hotels | 5,287 |
Number of managed and franchised hotel rooms | Room | 942,307 |
Ownership | |
Segment Reporting Information [Line Items] | |
Number of owned and leased hotel properties | 65 |
Number of owned and leased hotel rooms | Room | 20,557 |
Number of wholly owned and leased hotels | 57 |
Number of non wholly owned hotels | 1 |
Number of hotels of consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated affiliates | 5 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 9,452 | $ 8,906 | $ 8,131 | |
Amortization of contract acquisition costs | (29) | (27) | (17) | |||||||||
Franchise and licensing fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,691 | 1,537 | 1,326 | |||||||||
Base and other management fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | 394 | 385 | 379 | ||||||||
Incentive management fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 230 | 235 | 222 | |||||||||
Management and franchise | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 2,315 | 2,157 | 1,927 | |||||||||
Ownership | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,422 | 1,484 | 1,432 | |||||||||
Segment operating income | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 3,737 | 3,641 | 3,359 | |||||||||
Intersegment eliminations | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | (43) | (44) | (43) | ||||||||
Other revenues | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 101 | 98 | 105 | |||||||||
Direct reimbursements from managed and franchised properties | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | 3,110 | 2,881 | 2,572 | ||||||||
Indirect reimbursements from manged and franchised properties | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | $ 2,576 | $ 2,357 | $ 2,155 | ||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. | |||||||||||
[2] | Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
Business Segments - Reconcili_2
Business Segments - Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Amortization of contract acquisition costs | $ (29) | $ (27) | $ (17) | |||||||||
Other revenues, less other expenses | 29 | 47 | 49 | |||||||||
Net other expenses from managed and franchised properties | (77) | (85) | (172) | |||||||||
Depreciation and amortization | (346) | (325) | (336) | |||||||||
General and administrative | (441) | (443) | (439) | |||||||||
Gain on sale of assets, net | 81 | 0 | 0 | |||||||||
Operating income | $ 348 | $ 519 | $ 478 | $ 312 | $ 362 | $ 385 | $ 406 | $ 279 | 1,657 | 1,432 | 1,132 | |
Interest expense | (414) | (371) | (351) | |||||||||
Gain (loss) on foreign currency transactions | (2) | (11) | 3 | |||||||||
Loss on debt extinguishment | 0 | 0 | (60) | |||||||||
Other non-operating income, net | 3 | 28 | 29 | |||||||||
Income before income taxes | 1,244 | 1,078 | 753 | |||||||||
Management and franchise | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 2,315 | 2,157 | 1,927 | ||||||||
Ownership | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 125 | 108 | 120 | ||||||||
Segment operating income | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | $ 2,440 | $ 2,265 | $ 2,047 | |||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 14,957 | $ 13,995 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,892 | 1,706 |
Management and franchise | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,455 | 11,362 |
Ownership | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,610 | $ 927 |
Business Segments - Schedule _2
Business Segments - Schedule of Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 81 | $ 72 | $ 58 |
Corporate and other | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | 43 | 30 | 26 |
Ownership | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 38 | $ 42 | $ 32 |
Business Segments - Schedule _3
Business Segments - Schedule of Revenues by Country (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 9,452 | $ 8,906 | $ 8,131 |
United States | |||
Revenue from External Customer [Line Items] | |||
Revenues | 7,423 | 6,848 | 6,046 |
All other | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 2,029 | $ 2,058 | $ 2,085 |
Business Segments - Schedule _4
Business Segments - Schedule of Property and Equipment, Net by Country (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 380 | $ 367 |
United States | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 145 | 109 |
United Kingdom | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 71 | 106 |
Japan | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 84 | 75 |
Germany | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 38 | 40 |
All other | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 42 | $ 37 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | |
Commitments and Contingencies [Line Items] | ||
Total current liabilities | $ 2,871 | $ 2,615 |
Marketing, sales and brand program commitments | 350 | 375 |
Loan commitment | ||
Commitments and Contingencies [Line Items] | ||
Commitment to fund loans | $ 13 | |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Number of Contracts with Guarantees | Contract | 4 | |
Guarantees, expiration | 2023 to 2039 | |
Guarantees, possible cash outlays | $ 20 | |
Total current liabilities | $ 3 | $ 12 |
Number of hotels with performance guarantees with recorded liabilities | Contract | 1 | 1 |
Guarantee of Indebtedness of Others [Member] | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023. | |
Guarantees, possible cash outlays | $ 30 | |
Number of debt guarantees | Contract | 2 | |
Number of hotels with debt guarantees | Contract | 3 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction | |||||||||||
Management and franchise contracts, net | $ 780 | $ 872 | $ 780 | $ 872 | |||||||
Revenues | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | 9,452 | 8,906 | $ 8,131 |
Other revenues from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 5,686 | 5,238 | 4,727 | ||||||||
Other expenses from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 5,763 | 5,323 | 4,899 | ||||||||
Management and franchise | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 2,315 | 2,157 | 1,927 | ||||||||
Investments in affiliates | |||||||||||
Related Party Transaction | |||||||||||
Management and franchise contracts, net | $ 19 | 19 | |||||||||
Investments in affiliates | Other revenues from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 12 | 22 | 22 | ||||||||
Investments in affiliates | Other expenses from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 12 | 22 | 22 | ||||||||
Investments in affiliates | Management and franchise | |||||||||||
Related Party Transaction | |||||||||||
Revenues | $ 9 | $ 10 | 10 | ||||||||
The Blackstone Group and affiliates | |||||||||||
Related Party Transaction | |||||||||||
Contract acquisition costs | 11 | ||||||||||
The Blackstone Group and affiliates | Other revenues from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 113 | ||||||||||
The Blackstone Group and affiliates | Other expenses from managed and franchised properties | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 113 | ||||||||||
The Blackstone Group and affiliates | Management and franchise | |||||||||||
Related Party Transaction | |||||||||||
Revenues | $ 24 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Paid [Abstract] | |||
Interest paid | $ 360 | $ 330 | $ 314 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes, net of refunds | $ 363 | $ 288 | 526 |
Other Significant Noncash Transactions [Line Items] | |||
Non-cash financing activities | $ 25 |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 538 | $ 403 | |||
Restricted cash and cash equivalents | 92 | 81 | |||
Accounts receivable, net | 1,261 | 1,150 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 130 | 160 | |||
Other | 72 | 189 | |||
Total current assets | 2,093 | 1,983 | |||
Investments in subsidiaries | 0 | 0 | |||
Goodwill | 5,159 | 5,160 | $ 5,190 | ||
Brands | 4,877 | 4,869 | |||
Management and franchise contracts, net | 780 | 872 | |||
Other intangible assets, net | 421 | 415 | |||
Operating lease right-of-use assets | 867 | 0 | |||
Property and equipment, net | 380 | 367 | |||
Deferred income tax assets | 100 | 90 | |||
Other | 280 | 239 | |||
Total intangibles and other assets | 12,864 | 12,012 | |||
Total assets | 14,957 | 13,995 | |||
Accounts payable, accrued expenses and other | 1,703 | 1,549 | |||
Current maturities of long-term debt | [1] | 37 | 16 | ||
Current portion of deferred revenues | 332 | 350 | |||
Intercompany payables | 0 | 0 | |||
Total current liabilities | 2,871 | 2,615 | |||
Long-term debt | 7,956 | 7,266 | |||
Operating lease liabilities | 1,037 | 0 | |||
Deferred revenues | 827 | 826 | |||
Deferred income tax liabilities | 795 | 898 | |||
Other | 883 | 863 | |||
Liabilities | 15,429 | 13,437 | |||
Total Hilton stockholders' equity (deficit) | (482) | 551 | |||
Noncontrolling interests | 10 | 7 | |||
Total equity (deficit) | (472) | 558 | $ 1,691 | $ 5,627 | |
Total liabilities and equity (deficit) | 14,957 | 13,995 | |||
Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 799 | 700 | |||
Liability for guest loyalty program | 1,060 | 969 | |||
Parent Company [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Other | 0 | 0 | |||
Total current assets | 0 | 0 | |||
Investments in subsidiaries | (468) | 557 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | 3 | 4 | |||
Other | 0 | 0 | |||
Total intangibles and other assets | (465) | 561 | |||
Total assets | (465) | 561 | |||
Accounts payable, accrued expenses and other | 17 | 10 | |||
Current maturities of long-term debt | 0 | 0 | |||
Current portion of deferred revenues | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Total current liabilities | 17 | 10 | |||
Long-term debt | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Other | 0 | 0 | |||
Liabilities | 17 | 10 | |||
Total Hilton stockholders' equity (deficit) | (482) | 551 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity (deficit) | (482) | 551 | |||
Total liabilities and equity (deficit) | (465) | 561 | |||
Parent Company [member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
HWF Issuers [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Other | 1 | 1 | |||
Total current assets | 1 | 1 | |||
Investments in subsidiaries | 3,846 | 5,131 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | 7 | 0 | |||
Other | 11 | 23 | |||
Total intangibles and other assets | 3,864 | 5,154 | |||
Total assets | 3,865 | 5,155 | |||
Accounts payable, accrued expenses and other | 21 | 19 | |||
Current maturities of long-term debt | 0 | 0 | |||
Current portion of deferred revenues | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Total current liabilities | 21 | 19 | |||
Long-term debt | 4,274 | 4,573 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 6 | |||
Other | 38 | 0 | |||
Liabilities | 4,333 | 4,598 | |||
Total Hilton stockholders' equity (deficit) | (468) | 557 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity (deficit) | (468) | 557 | |||
Total liabilities and equity (deficit) | 3,865 | 5,155 | |||
HWF Issuers [member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
HOC [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 1 | 3 | |||
Restricted cash and cash equivalents | 36 | 34 | |||
Accounts receivable, net | 26 | 10 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 43 | 52 | |||
Other | 1 | 1 | |||
Total current assets | 107 | 100 | |||
Investments in subsidiaries | 7,645 | 7,930 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 1 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Operating lease right-of-use assets | 31 | ||||
Property and equipment, net | 62 | 27 | |||
Deferred income tax assets | 96 | 94 | |||
Other | 38 | 33 | |||
Total intangibles and other assets | 7,873 | 8,084 | |||
Total assets | 7,980 | 8,184 | |||
Accounts payable, accrued expenses and other | 277 | 229 | |||
Current maturities of long-term debt | 19 | 0 | |||
Current portion of deferred revenues | 107 | 106 | |||
Intercompany payables | 40 | 40 | |||
Total current liabilities | 443 | 375 | |||
Long-term debt | 3,472 | 2,467 | |||
Operating lease liabilities | 37 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Other | 182 | 211 | |||
Liabilities | 4,134 | 3,053 | |||
Total Hilton stockholders' equity (deficit) | 3,846 | 5,131 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity (deficit) | 3,846 | 5,131 | |||
Total liabilities and equity (deficit) | 7,980 | 8,184 | |||
HOC [member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Guarantor Subsidiaries [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 10 | 17 | |||
Restricted cash and cash equivalents | 21 | 15 | |||
Accounts receivable, net | 897 | 735 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 40 | 37 | |||
Other | 39 | 36 | |||
Total current assets | 1,007 | 840 | |||
Investments in subsidiaries | (468) | 557 | |||
Goodwill | 3,824 | 3,824 | |||
Brands | 4,405 | 4,404 | |||
Management and franchise contracts, net | 448 | 556 | |||
Other intangible assets, net | 306 | 287 | |||
Operating lease right-of-use assets | 8 | ||||
Property and equipment, net | 68 | 65 | |||
Deferred income tax assets | 0 | 0 | |||
Other | 49 | 22 | |||
Total intangibles and other assets | 8,640 | 9,715 | |||
Total assets | 9,647 | 10,555 | |||
Accounts payable, accrued expenses and other | 695 | 529 | |||
Current maturities of long-term debt | 0 | 0 | |||
Current portion of deferred revenues | 218 | 239 | |||
Intercompany payables | 0 | 0 | |||
Total current liabilities | 1,712 | 1,468 | |||
Long-term debt | 0 | 0 | |||
Operating lease liabilities | 5 | ||||
Deferred revenues | 755 | 762 | |||
Deferred income tax liabilities | 930 | 962 | |||
Other | 82 | 93 | |||
Liabilities | 4,544 | 4,254 | |||
Total Hilton stockholders' equity (deficit) | 5,103 | 6,301 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity (deficit) | 5,103 | 6,301 | |||
Total liabilities and equity (deficit) | 9,647 | 10,555 | |||
Guarantor Subsidiaries [member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 799 | 700 | |||
Liability for guest loyalty program | 1,060 | 969 | |||
Non-Guarantor Subsidiaries [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 527 | 383 | |||
Restricted cash and cash equivalents | 35 | 32 | |||
Accounts receivable, net | 338 | 405 | |||
Intercompany receivables | 40 | 40 | |||
Prepaid expenses | 52 | 80 | |||
Other | 54 | 154 | |||
Total current assets | 1,046 | 1,094 | |||
Investments in subsidiaries | 0 | 0 | |||
Goodwill | 1,335 | 1,336 | |||
Brands | 472 | 465 | |||
Management and franchise contracts, net | 331 | 316 | |||
Other intangible assets, net | 115 | 128 | |||
Operating lease right-of-use assets | 828 | ||||
Property and equipment, net | 250 | 275 | |||
Deferred income tax assets | 129 | 90 | |||
Other | 182 | 161 | |||
Total intangibles and other assets | 3,642 | 2,771 | |||
Total assets | 4,688 | 3,865 | |||
Accounts payable, accrued expenses and other | 715 | 765 | |||
Current maturities of long-term debt | 18 | 16 | |||
Current portion of deferred revenues | 13 | 14 | |||
Intercompany payables | 0 | 0 | |||
Total current liabilities | 746 | 795 | |||
Long-term debt | 210 | 226 | |||
Operating lease liabilities | 995 | ||||
Deferred revenues | 72 | 64 | |||
Deferred income tax liabilities | 0 | 28 | |||
Other | 581 | 559 | |||
Liabilities | 2,604 | 1,672 | |||
Total Hilton stockholders' equity (deficit) | 2,074 | 2,186 | |||
Noncontrolling interests | 10 | 7 | |||
Total equity (deficit) | 2,084 | 2,193 | |||
Total liabilities and equity (deficit) | 4,688 | 3,865 | |||
Non-Guarantor Subsidiaries [member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Eliminations [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | (40) | (40) | |||
Prepaid expenses | (5) | (9) | |||
Other | (23) | (3) | |||
Total current assets | (68) | (52) | |||
Investments in subsidiaries | (10,555) | (14,175) | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | (135) | (98) | |||
Other | 0 | 0 | |||
Total intangibles and other assets | (10,690) | (14,273) | |||
Total assets | (10,758) | (14,325) | |||
Accounts payable, accrued expenses and other | (22) | (3) | |||
Current maturities of long-term debt | 0 | 0 | |||
Current portion of deferred revenues | (6) | (9) | |||
Intercompany payables | (40) | (40) | |||
Total current liabilities | (68) | (52) | |||
Long-term debt | 0 | 0 | |||
Operating lease liabilities | 0 | ||||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | (135) | (98) | |||
Other | 0 | 0 | |||
Liabilities | (203) | (150) | |||
Total Hilton stockholders' equity (deficit) | (10,555) | (14,175) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity (deficit) | (10,555) | (14,175) | |||
Total liabilities and equity (deficit) | (10,758) | (14,325) | |||
Eliminations [Member] | Guest Loyalty Program [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Liability for guest loyalty program | $ 0 | $ 0 | |||
[1] | Represents current maturities of finance lease liabilities. |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 9,452 | $ 8,906 | $ 8,131 |
Depreciation and amortization | 346 | 325 | 336 | ||||||||
General and administrative | 441 | 443 | 439 | ||||||||
Other expenses | 72 | 51 | 56 | ||||||||
Total expenses excluding reimbursable expenses | 2,113 | 2,151 | 2,100 | ||||||||
Total expenses | 7,876 | 7,474 | 6,999 | ||||||||
Gain (loss) on sale of assets, net | 81 | 0 | 0 | ||||||||
Operating income (loss) | 348 | 519 | 478 | 312 | 362 | 385 | 406 | 279 | 1,657 | 1,432 | 1,132 |
Interest expense | (414) | (371) | (351) | ||||||||
Gain (loss) on foreign currency transactions | (2) | (11) | 3 | ||||||||
Loss on debt extinguishment | 0 | 0 | (60) | ||||||||
Other non-operating income (loss), net | 3 | 28 | 29 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | 1,244 | 1,078 | 753 | ||||||||
Income tax benefit (expense) | (358) | (309) | 336 | ||||||||
Income (loss) before equity in earnings from subsidiaries | 886 | 769 | 1,089 | ||||||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 176 | 290 | 261 | 159 | 225 | 164 | 217 | 163 | 886 | 769 | 1,089 |
Net income attributable to noncontrolling interests | (5) | (5) | (5) | ||||||||
Net income attributable to Hilton stockholders | $ 175 | $ 288 | $ 260 | $ 158 | $ 224 | $ 162 | $ 217 | $ 161 | 881 | 764 | 1,084 |
Comprehensive income | 828 | 712 | 1,286 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (5) | ||||||||
Comprehensive income attributable to Hilton stockholders | 823 | 707 | 1,281 | ||||||||
Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,681 | 1,530 | 1,321 | ||||||||
Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 332 | 321 | 324 | ||||||||
Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 230 | 235 | 222 | ||||||||
Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,422 | 1,484 | 1,432 | ||||||||
Expenses | 1,254 | 1,332 | 1,269 | ||||||||
Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 101 | 98 | 105 | ||||||||
Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 3,766 | 3,668 | 3,404 | ||||||||
Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 5,686 | 5,238 | 4,727 | ||||||||
Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 5,763 | 5,323 | 4,899 | ||||||||
Parent Company [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain (loss) on sale of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | (3) | ||||||||
Income (loss) before equity in earnings from subsidiaries | 0 | 0 | (3) | ||||||||
Equity in earnings from subsidiaries | 881 | 764 | 1,087 | ||||||||
Net income | 881 | 764 | 1,084 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 881 | 764 | 1,084 | ||||||||
Comprehensive income | 823 | 707 | 1,281 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 823 | 707 | 1,281 | ||||||||
Parent Company [member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain (loss) on sale of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Interest expense | (192) | (227) | (244) | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | (60) | ||||||||||
Other non-operating income (loss), net | (11) | (9) | (3) | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | (203) | (236) | (307) | ||||||||
Income tax benefit (expense) | 49 | 57 | 122 | ||||||||
Income (loss) before equity in earnings from subsidiaries | (154) | (179) | (185) | ||||||||
Equity in earnings from subsidiaries | 1,035 | 943 | 1,272 | ||||||||
Net income | 881 | 764 | 1,087 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 881 | 764 | 1,087 | ||||||||
Comprehensive income | 838 | 784 | 1,101 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 838 | 784 | 1,101 | ||||||||
HWF Issuers [member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 0 | 0 | 0 | ||||||||
HOC [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 599 | 479 | 334 | ||||||||
Depreciation and amortization | 7 | 6 | 5 | ||||||||
General and administrative | 339 | 323 | 327 | ||||||||
Other expenses | 8 | 7 | 17 | ||||||||
Total expenses excluding reimbursable expenses | 354 | 336 | 349 | ||||||||
Total expenses | 678 | 572 | 496 | ||||||||
Gain (loss) on sale of assets, net | 0 | 0 | |||||||||
Operating income (loss) | (79) | (93) | (162) | ||||||||
Interest expense | (166) | (106) | (61) | ||||||||
Gain (loss) on foreign currency transactions | 3 | 4 | 10 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 7 | 3 | 4 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | (235) | (192) | (209) | ||||||||
Income tax benefit (expense) | 51 | 39 | 26 | ||||||||
Income (loss) before equity in earnings from subsidiaries | (184) | (153) | (183) | ||||||||
Equity in earnings from subsidiaries | 1,219 | 1,096 | 1,455 | ||||||||
Net income | 1,035 | 943 | 1,272 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 1,035 | 943 | 1,272 | ||||||||
Comprehensive income | 1,042 | 932 | 1,288 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 1,042 | 932 | 1,288 | ||||||||
HOC [member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 275 | 227 | 143 | ||||||||
HOC [member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1 | 1 | 1 | ||||||||
HOC [member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HOC [member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
HOC [member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 3 | 6 | 31 | ||||||||
HOC [member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 279 | 234 | 175 | ||||||||
HOC [member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 320 | 245 | 159 | ||||||||
HOC [member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 324 | 236 | 147 | ||||||||
Guarantor Subsidiaries [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 6,402 | 5,919 | 5,404 | ||||||||
Depreciation and amortization | 255 | 237 | 242 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 11 | 21 | 29 | ||||||||
Total expenses excluding reimbursable expenses | 266 | 258 | 271 | ||||||||
Total expenses | 5,101 | 4,724 | 4,418 | ||||||||
Gain (loss) on sale of assets, net | 0 | (1) | |||||||||
Operating income (loss) | 1,301 | 1,195 | 985 | ||||||||
Interest expense | (1) | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | (24) | (99) | 124 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | (6) | 16 | 7 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | 1,270 | 1,112 | 1,116 | ||||||||
Income tax benefit (expense) | (313) | (263) | 89 | ||||||||
Income (loss) before equity in earnings from subsidiaries | 957 | 849 | 1,205 | ||||||||
Equity in earnings from subsidiaries | 881 | 764 | 1,087 | ||||||||
Net income | 1,838 | 1,613 | 2,292 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 1,838 | 1,613 | 2,292 | ||||||||
Comprehensive income | 1,838 | 1,612 | 2,295 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 1,838 | 1,612 | 2,295 | ||||||||
Guarantor Subsidiaries [member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,268 | 1,182 | 1,077 | ||||||||
Guarantor Subsidiaries [member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 207 | 205 | 195 | ||||||||
Guarantor Subsidiaries [member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 77 | 78 | 76 | ||||||||
Guarantor Subsidiaries [member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Guarantor Subsidiaries [member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 82 | 78 | 70 | ||||||||
Guarantor Subsidiaries [member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,634 | 1,543 | 1,418 | ||||||||
Guarantor Subsidiaries [member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 4,768 | 4,376 | 3,986 | ||||||||
Guarantor Subsidiaries [member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 4,835 | 4,466 | 4,147 | ||||||||
Non-Guarantor Subsidiaries [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 2,469 | 2,526 | 2,417 | ||||||||
Depreciation and amortization | 84 | 82 | 89 | ||||||||
General and administrative | 132 | 130 | 118 | ||||||||
Other expenses | 41 | 31 | 27 | ||||||||
Total expenses excluding reimbursable expenses | 1,511 | 1,575 | 1,503 | ||||||||
Total expenses | 2,115 | 2,196 | 2,108 | ||||||||
Gain (loss) on sale of assets, net | 81 | 1 | |||||||||
Operating income (loss) | 435 | 330 | 310 | ||||||||
Interest expense | (55) | (38) | (47) | ||||||||
Gain (loss) on foreign currency transactions | 19 | 84 | (131) | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 13 | 18 | 21 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | 412 | 394 | 153 | ||||||||
Income tax benefit (expense) | (145) | (142) | 102 | ||||||||
Income (loss) before equity in earnings from subsidiaries | 267 | 252 | 255 | ||||||||
Equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 267 | 252 | 255 | ||||||||
Net income attributable to noncontrolling interests | (5) | (5) | (5) | ||||||||
Net income attributable to Hilton stockholders | 262 | 247 | 250 | ||||||||
Comprehensive income | 245 | 187 | 419 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (5) | ||||||||
Comprehensive income attributable to Hilton stockholders | 240 | 182 | 414 | ||||||||
Non-Guarantor Subsidiaries [member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 156 | 139 | 118 | ||||||||
Non-Guarantor Subsidiaries [member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 124 | 115 | 128 | ||||||||
Non-Guarantor Subsidiaries [member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 153 | 157 | 146 | ||||||||
Non-Guarantor Subsidiaries [member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,422 | 1,484 | 1,432 | ||||||||
Expenses | 1,254 | 1,332 | 1,269 | ||||||||
Non-Guarantor Subsidiaries [member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 16 | 14 | 11 | ||||||||
Non-Guarantor Subsidiaries [member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,871 | 1,909 | 1,835 | ||||||||
Non-Guarantor Subsidiaries [member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 598 | 617 | 582 | ||||||||
Non-Guarantor Subsidiaries [member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 604 | 621 | 605 | ||||||||
Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (18) | (24) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | (30) | (10) | (6) | ||||||||
Other expenses | 12 | (8) | (17) | ||||||||
Total expenses excluding reimbursable expenses | (18) | (18) | (23) | ||||||||
Total expenses | (18) | (18) | (23) | ||||||||
Gain (loss) on sale of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | (1) | ||||||||
Interest expense | 0 | 0 | 1 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | ||||||||
Income (Loss) before income taxes and equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Income (loss) before equity in earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings from subsidiaries | (4,016) | (3,567) | (4,901) | ||||||||
Net income | (4,016) | (3,567) | (4,901) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | (4,016) | (3,567) | (4,901) | ||||||||
Comprehensive income | (3,958) | (3,510) | (5,098) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | (3,958) | (3,510) | (5,098) | ||||||||
Eliminations [Member] | Franchise and licensing fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (18) | (17) | ||||||||
Eliminations [Member] | Base and other management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Incentive management fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Owned and leased hotels | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Other revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | (7) | ||||||||
Eliminations [Member] | Total revenues excluding reimbursable revenues | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (18) | (24) | ||||||||
Eliminations [Member] | Other revenues from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Other expenses from managed and franchised properties | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 1,384 | $ 1,255 | $ 849 |
Capital expenditures for property and equipment | (81) | (72) | (58) |
Payments received on other financing receivables | 3 | 50 | 7 |
Proceeds from asset disposition | 120 | 0 | 0 |
Capitalized software costs | (124) | (87) | (75) |
Other | (41) | (22) | (21) |
Net cash used in investing activities | (123) | (131) | (147) |
Borrowings | 2,200 | 1,676 | 1,824 |
Repayment of debt | (1,547) | (1,005) | (1,860) |
Debt issuance costs | 29 | 21 | 69 |
Repayment of intercompany borrowings | 0 | ||
Intercompany transfers | 0 | 0 | 0 |
Dividends paid | (172) | (181) | (195) |
Repurchases of common stock | (1,538) | (1,721) | (891) |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs | 0 | 0 | (501) |
Share-based compensation tax withholdings and other | (27) | (44) | (31) |
Other | 0 | 4 | 1 |
Net cash provided by (used) in financing activities | (1,113) | (1,300) | (1,724) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (10) | 8 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 146 | (186) | (1,014) |
Cash, restricted cash and cash equivalents, beginning of period | 484 | 670 | 1,684 |
Cash, restricted cash and cash equivalents, end of period | 630 | 484 | 670 |
Parent Company [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Capital expenditures for property and equipment | 0 | 0 | 0 |
Payments received on other financing receivables | 0 | 0 | 0 |
Proceeds from asset disposition | 0 | ||
Capitalized software costs | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 |
Repayment of intercompany borrowings | 0 | ||
Intercompany transfers | 1,710 | 1,902 | 1,086 |
Dividends paid | (172) | (181) | (195) |
Repurchases of common stock | (1,538) | (1,721) | (891) |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs | 0 | ||
Share-based compensation tax withholdings and other | 0 | 0 | 0 |
Other | 0 | 0 | |
Net cash provided by (used) in financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 |
HWF Issuers [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (153) | (185) | (113) |
Capital expenditures for property and equipment | 0 | 0 | 0 |
Payments received on other financing receivables | 0 | 0 | 0 |
Proceeds from asset disposition | 0 | ||
Capitalized software costs | 0 | 0 | 0 |
Other | 0 | 0 | (13) |
Net cash used in investing activities | 0 | 0 | (13) |
Borrowings | 1,200 | 175 | 1,822 |
Repayment of debt | (1,505) | (985) | (1,852) |
Debt issuance costs | 13 | 0 | 69 |
Repayment of intercompany borrowings | 0 | ||
Intercompany transfers | 471 | 995 | 225 |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs | 0 | ||
Share-based compensation tax withholdings and other | 0 | 0 | 0 |
Other | 0 | 0 | |
Net cash provided by (used) in financing activities | 153 | 185 | 126 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 |
HOC [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (30) | (8) | (103) |
Capital expenditures for property and equipment | (14) | (9) | (12) |
Payments received on other financing receivables | 0 | 0 | 0 |
Proceeds from asset disposition | 0 | ||
Capitalized software costs | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash used in investing activities | (14) | (9) | (12) |
Borrowings | 1,000 | 1,500 | 0 |
Repayment of debt | (25) | 0 | 0 |
Debt issuance costs | 16 | 21 | 0 |
Repayment of intercompany borrowings | (3) | ||
Intercompany transfers | (888) | (1,444) | 122 |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs | 0 | ||
Share-based compensation tax withholdings and other | (27) | (44) | (31) |
Other | 0 | 0 | |
Net cash provided by (used) in financing activities | 44 | (9) | 88 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | (26) | (27) |
Cash, restricted cash and cash equivalents, beginning of period | 37 | 63 | 90 |
Cash, restricted cash and cash equivalents, end of period | 37 | 37 | 63 |
Guarantor Subsidiaries [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 1,494 | 1,128 | 950 |
Capital expenditures for property and equipment | (7) | (7) | (12) |
Payments received on other financing receivables | 3 | 49 | 7 |
Proceeds from asset disposition | 0 | ||
Capitalized software costs | (124) | (87) | (75) |
Other | (30) | (6) | (8) |
Net cash used in investing activities | (158) | (51) | (88) |
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 |
Repayment of intercompany borrowings | 0 | ||
Intercompany transfers | (1,337) | (1,070) | (865) |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs | 0 | ||
Share-based compensation tax withholdings and other | 0 | 0 | 0 |
Other | 3 | 0 | |
Net cash provided by (used) in financing activities | (1,337) | (1,073) | (865) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (1) | 4 | (3) |
Cash, restricted cash and cash equivalents, beginning of period | 32 | 28 | 31 |
Cash, restricted cash and cash equivalents, end of period | 31 | 32 | 28 |
Non-Guarantor Subsidiaries [member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 213 | 320 | 285 |
Capital expenditures for property and equipment | (60) | (56) | (34) |
Payments received on other financing receivables | 0 | 1 | 0 |
Proceeds from asset disposition | 120 | ||
Capitalized software costs | 0 | 0 | 0 |
Other | (11) | (16) | 3 |
Net cash used in investing activities | 49 | (71) | (31) |
Borrowings | 0 | 1 | 2 |
Repayment of debt | (17) | (20) | (8) |
Debt issuance costs | 0 | 0 | 0 |
Repayment of intercompany borrowings | 0 | ||
Intercompany transfers | 44 | (383) | (568) |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany dividends | (140) | (170) | |
Cash transferred in spin-offs | (501) | ||
Share-based compensation tax withholdings and other | 0 | 0 | 0 |
Other | 1 | 1 | |
Net cash provided by (used) in financing activities | (113) | (403) | (1,246) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (10) | 8 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 147 | (164) | (984) |
Cash, restricted cash and cash equivalents, beginning of period | 415 | 579 | 1,563 |
Cash, restricted cash and cash equivalents, end of period | 562 | 415 | 579 |
Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (140) | 0 | (170) |
Capital expenditures for property and equipment | 0 | 0 | 0 |
Payments received on other financing receivables | 0 | 0 | 0 |
Proceeds from asset disposition | 0 | ||
Capitalized software costs | 0 | 0 | 0 |
Other | 0 | 0 | (3) |
Net cash used in investing activities | 0 | 0 | 3 |
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 |
Repayment of intercompany borrowings | 3 | ||
Intercompany transfers | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany dividends | 140 | 170 | |
Cash transferred in spin-offs | 0 | ||
Share-based compensation tax withholdings and other | 0 | 0 | 0 |
Other | 0 | 0 | |
Net cash provided by (used) in financing activities | 140 | 0 | 173 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Guara_6
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) | Dec. 31, 2019Rate |
HOC [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
HWF Issuers [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Hilton Worldwide Parent [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Quarterly Financial Information Disclosure (unaudited) [Abstract] | ||||||||||||
Revenues | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 9,452 | $ 8,906 | $ 8,131 | |
Operating income | 348 | 519 | 478 | 312 | 362 | 385 | 406 | 279 | 1,657 | 1,432 | 1,132 | |
Net income | 176 | 290 | 261 | 159 | 225 | 164 | 217 | 163 | 886 | 769 | 1,089 | |
Net income attributable to Hilton stockholders | $ 175 | $ 288 | $ 260 | $ 158 | $ 224 | $ 162 | $ 217 | $ 161 | $ 881 | $ 764 | $ 1,084 | |
Basic earnings per share | [1] | $ 0.62 | $ 1.01 | $ 0.90 | $ 0.54 | $ 0.76 | $ 0.55 | $ 0.72 | $ 0.51 | $ 3.07 | $ 2.53 | $ 3.34 |
Diluted earnings per share | [1] | $ 0.61 | $ 1 | $ 0.89 | $ 0.54 | $ 0.75 | $ 0.54 | $ 0.71 | $ 0.51 | $ 3.04 | $ 2.50 | $ 3.32 |
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |